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When Will Ethereum Turn Deflationary?

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Over the past 30 days, 62,699 ETH, valued at $172 million at current market prices, have been added to the leading altcoin’s circulating supply.

The circulating supply now stands at 120.30 million ETH, marking its highest level since the year began.

Ethereum Sees Decline in Activity and Burn Rate

According to data from Ultrasound.money, ETH’s circulating supply has steadily risen since April 14.

An asset’s circulating supply refers to the number of coins or tokens available to the public. It increases when more tokens become available for trading. In Ethereum’s case, this supply growth happens when the network witnesses a demand drop, reducing the burn rate. 

eth circulating supply
Ethereum Circulating Supply. Source: Ultrasound.money

Typically, as more users transact and engage with Ethereum, the burn rate — measuring ETH tokens permanently removed from circulation — increases, driving Ethereum’s deflationary supply dynamic. However, when user activity drops, the burn rate also declines, leaving more coins in circulation and expanding the circulating supply.

User activity on Ethereum has been trending downward in recent months. Data from Artemis reveals that since daily active addresses peaked at 611,000 on June 22, the number of users on Ethereum has decreased by 37%.

Read more: How to Invest in Ethereum ETFs?

ethereum user activity
Ethereum Network Activity. Source: Artemis

As a result, the number of daily transactions completed on the network has also plunged. Per Artemis, since climbing to a high of 1.3 million on June 22,  the daily count of unique on-chain interactions with Ethereum has decreased by 15%.

ETH Price Prediction: Buyers and Sellers Take Some Time Off

When more ETH tokens enter circulation, the overall supply available for purchase generally increases. This can lead to a price decline if supply outpaces demand. This scenario has unfolded as ETH struggles to break above the $3,000 price mark since the beginning of the month.

At press time, ETH trades at $2,742, reflecting a 15% drop over the past 30 days due to the broader market downturn. However, in recent days, the market has stabilized, showing a relative balance between buying and selling pressures. This is evidenced by the flat Relative Strength Index (RSI).

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

eth price prediction
Ethereum Price Analysis. Source: TradingView

When an asset’s RSI is flat, it indicates that it is neither overbought nor oversold, suggesting a period of market indecision or consolidation. When this happens, traders are waiting for a catalyst to trigger either a buying or selling spree.

A surge in accumulation could push ETH toward a price target of $2,867. On the flip side, increased distribution might drive it down to $2,535.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Justin Sun Claims First Digital Trust Fraud Exceeds Impact of FTX

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TRON founder Justin Sun is intensifying his accusations against First Digital Trust (FDT), the issuer of the FDUSD stablecoin, who he claims embezzled $500 million of its clients’ funds.

In an April 5 post on X, Sun compared FDT to the now-defunct FTX exchange, claiming the FDT case is “ten times worse.” FTX filed for bankruptcy in November 2022 after a bank run revealed an $8 billion shortfall in its assets.

Justin Sun Compares First Digital Trust to FTX

Sun argued that while FTX misused user funds, the exchange at least maintained an internal system that portrayed the activity as pledged loans.

He explained that FTX used assets like FTT, SRM, and MAPS tokens as collateral in transactions that, on the surface, had some structure. In contrast, Sun claims First Digital Trust outright stole funds without user consent or any internal pledge mechanism.

“FDT simply siphoned off $456m from TUSD’s custodial funds without client authorization or knowledge, and booked as loans to a dubious third party Dubai company without any collaterals,” Sun claimed.

The Tron founder further asserted that the now-convicted FTX founder Sam Bankman-Fried (SBF) indeed misused funds. However, Sun noted much of that capital went into investments in reputable firms such as Robinhood and AI company Anthropic.

On the other hand, Sun alleged that FDT diverted user assets into private entities for personal gain without any meaningful investment.

Sun also took aim at FDT CEO Vincent Chok Zhuo, criticizing his apparent indifference following the exposure of the alleged misconduct.

According to him, Chok has shown no intention of taking responsibility. This contrasts with SBF, who took steps to recover user assets and cooperated with authorities.

“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed,” Sun stated.

Considering this development, the TRON founder urged Hong Kong authorities to take swift action. He called for a response similar to that of US regulators during the FTX collapse.

Sun emphasized that Hong Kong’s reputation as a global financial hub is at risk and called for immediate enforcement to prevent further damage.

“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters continue its pyramid scheme against the public,” the crypto entrepreneur concluded.

To support investigations, Sun has launched a $50 million bounty program aimed at exposing the alleged misconduct. He also met with Hong Kong lawmaker Johnny Wu to discuss potential regulatory action.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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3 Token Unlocks for This Week: AXS, JTO, XAV

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Token unlocks play a pivotal role in the crypto market, impacting liquidity, price volatility, and investor sentiment. They are events in crypto where locked coins or tokens are released and become available for trading in the open market.

This week, three major projects—Axie Infinity (AXS), Jito Labs (JTO), and Xave (XAV)—will release previously locked tokens into circulation. Here’s what you need to know and watch for.

1. Axie Infinity (AXS)

  • Unlock Date: April 12
  • Number of Tokens to be Unlocked: 10.72 Million AXS (3.97% of Total Supply)
  • Current Circulating Supply: 160.159 Million AXS
  • Total supply: 270 Million AXS

    Axie Infinity is a blockchain-based game featuring digital creatures called Axies, often compared to Pokémon. This pet-centric game combines elements of blockchain, NFTs, and ERC-20 tokens, offering players the chance to collect, battle, and trade unique creatures in a virtual world.

    The April 12 unlock will consist of 10.72 million AXS tokens valued at about $29 million. Axie Infinity will award the majority of these tokens for staking rewards and for the team.

    Axie Infinity Unlock. Source: Cryptorank

    2. Jito Labs (JTO)

    • Unlock Date: April 7
    • Number of Tokens to be Unlocked: 11.31 Million JTO (1.13% of Total Supply)
    • Current Circulating Supply: 313.37 Million JTO
    • Total supply: 1 Billion JTO

    Jito is a liquid staking service on Solana that distributes MEV rewards to holders. On April 7, Jito will unlock 11.3 million tokens which is currently worth around $20 million.

    The project will allocate the majority of the unlocked tokens for ecosystem development, core contributors, and community growth. Additionally, it will allocate 10% of the tokens for airdrops.

    Jito Labs Unlock. Source: Cryptorank

    3. Xave (XAV)

    • Unlock Date: April 11
    • Number of Tokens to be Unlocked: 313.29 Million XAV (3.13% of Total Supply)
    • Total supply: 10 Billion XAV

    Xave is a DeFi platform that focus on decentralized foreign exchange (FX) markets. It enhances stablecoin liquidity through an automated market maker (AMM) model.

    On April 11, the network will unlock over 313 million XAV tokens, which constitutes just over 3% of the total supply. Xave will largely focus distribution to the team, investors, and treasury.

    Xave Unlock. Source: Cryptorank

    Other prominent token unlocks that investors can look out for this week include Delysium (AGI), Parcl (PRCL) and Circular Protocol (CIRX).

    Disclaimer

    In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Key Solana Holders’ 6-Month High Accumulation Signal Price Rise

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Solana (SOL) has struggled to gain momentum over the past couple of weeks, and its price has failed to recover significantly. 

Despite this, the altcoin has seen signs of stabilization, with long-term holders (LTHs) showing increasing support. This shift could indicate a potential price rise, provided the current trend holds.

Solana Investors Move To Accumulate

The HODLer Net Position Change for Solana has been positive for the past four days, with consistent green bars indicating that LTHs are accumulating more SOL. This is the longest streak of accumulation in over six months, signaling confidence from long-term investors.

As these investors continue to add to their positions, Solana could build a solid foundation for a price rebound.

LTHs tend to significantly influence Solana’s price, as their holdings reflect longer-term confidence in the cryptocurrency. If this trend continues, the growing support from LTHs could provide the necessary backing to help Solana break through key resistance levels.

Solana HODLer Net Position Change
Solana HODLer Net Position Change. Source: Glassnode

However, despite the support from LTHs, Solana’s overall market sentiment is still mixed.

New addresses, an important metric for investor interest, have recently hit a six-month low. This indicates that fewer new investors are entering the market, reflecting a lack of optimism for a recovery in the short term. The last time new address activity was this low was in October, suggesting that investor confidence is currently subdued.

The drop in new addresses could signal caution among potential buyers, affecting the altcoin’s overall momentum. While LTHs continue to accumulate, the lack of fresh interest from new investors could delay any significant upward movement for Solana.

Solana New Addresses
Solana New Addresses. Source: Glassnode

SOL Price Vulnerable To Correction

Solana is currently trading at $119, holding just above the crucial support level of $118. While the altcoin is attempting to make its way to $135, mixed market sentiments suggest it may struggle to break through this resistance.

The price could consolidate between $118 and $135 as it builds enough momentum for a potential rally.

If Solana manages to bounce back, it may continue to trade within this range, allowing time for the market to stabilize and support further price appreciation. Consolidation could help SOL gather strength before another attempt to breach the $135 level.

SOL Price Analysis.
SOL Price Analysis. Source: TradingView

However, if the price falls below $118, it could signal a shift in momentum, invalidating the bullish-neutral outlook. A drop below this support level would likely lead to further declines, potentially taking Solana down to $109, which would extend investors’ losses.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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