ETH Surges to $3200 As Number of ETH Burning Exceeds 20,000 Coins

It’s five days since the London hardfork upgrade went live last Thursday, August 5. Since then the ETH price has been showing strength and has recently made a move to $3,200 levels. As of press time, ETH is trading 5.03% up at a price of $3110 with a market cap of $363 billion.

Post the EIP-1559 implementation, the amount of token burning also seems to be going strong. The latest data from Etherchain shows that the amount of ETH burned has exceeded 20,000 amounting to a massive $60 million USD.

The burnt rate in the last 24 hours has remained at 3 ETH/minute while the issuance rate remains at 6.7ETH/min. The base fee has been staying at 30.7 Gwei.

The EIP-1559 implementation has introduced a base fee structure thereby making the Ethereum blockchain network deflationary. Besides, the ETH burning mechanism further reduces the supply of Ethereum on the exchanges. This creates a bullish momentum ahead for Ethereum.

ETH Price Vs Address Correlation

On-chain data provider Santiment explains how the top addresses on Ethereum are offering great insights into where’s the price is heading. The supply of Ethereum at the exchanges, since the London hardfork, has been on a decline. Here’s a look into the reverse correlation between the ETH supply at the exchanges and the price.

The data from Santiment further shows that the London hardfork has helped to revive a bullish bias among retail investors. The report notes:

Ethereum’s social data has gone haywire in the past 72 hours, signaling market-wide euphoria and increased confidence in the coin’s future performance. And yet, several concerning on-chain markers continue to linger, as the coin hovers around the $3k mark to end the week.

The Ethereum price has reached a three-month high while dip buyers have been enjoying the recent price surge. A number of analysts have been bullish about Ethereum’s price going ahead. Some expect ETH to touch $8000 by the end of 2021.