A popular cryptanalyst is explaining to investors the reason why they shouldn’t give up on Ethereum (ETH) despite recent difficulties.
Lark Davis tells his 540,000 Twitter followers that while ETH is down 23% from a 30-day high, its price should rise sharply as the supply of tokens on exchange platforms is shrinking.
“There are now about 3 million less #ethereum on the exchanges compared to when the price was at an all-time high. Wow! This market is a ticking time bomb! “
Asset exchange reserve is the number of tokens available in all wallets on centralized exchange platforms.
Davis’ remarks follow as Ethereum activated its London hard fork earlier this year, which, among other things, implemented a deflationary mechanism that burns up ETH depending on how many transactions are processed on the network. To date, over $ 1 billion of ETH has been burned using this method.
Ethereum has lost almost 170,000 tokens from exchange platforms in the past seven days, according to Viewbase, with 1.17 million tokens burned in 30 days.
Ethereum is trading at $ 3,012 at the time of writing, according to CoinGecko.
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