Could Low Issuance Rate on Ethereum Mean Higher Prices?

Could Low Issuance Rate on Ethereum Mean Higher Prices?
фото показано с : newsbtc.com

2019-2-5 02:00

According to a Tweet by the founder of EthHub and the presenter of the Into the Ether podcast, Eric Conner, the rate of issuance of new Ether (ETH) is currently at its lowest ever. Owing to simple economics, this decreased supply could mean higher prices for the number three digital asset by market capitalisation.

However, issuance is just one half of the story. For prices to move upwards, demand needs to remain at a constant rate or increase.

Will Ethereum Network Upgrades Provide Increased Demand for the Asset?

With new coin issuance rates at the lowest they have ever been on the Ethereum network, any surge in demand could see the price of the ETH shoot up much more rapidly than previously seen.

The drop in the rate of issuance was pointed out by Ethereum proponent Eric Conner earlier today via Twitter. The podcast presenter and educational resource provider posted a chart taken from blockchain data firm Coinmetrics:

Ethereum's issuance rate is currently the lowest it's ever been.@coinmetrics pic.twitter.com/Qf8EWXML9a

— Eric Conner (@econoar) February 4, 2019

Of course, a drop in the issuance rate of an asset does not automatically mean prices will go up. For this to happen, demand for ETH would need to stay constant or increase. Given that Ether was particularly badly hit by the current crypto bear market, this is anything but a given right now.

That said, the proposed upgrade to the network known as Constantinople could well drive demand, which would in turn lead to higher ETH prices. The scheduled update was due to occur last month. However, it was decided that the upgrade would be postponed until late February. Security issues were cited as the reasoning for this delay.

Will a successful Constantinople hard fork make ETH prices rise?

Constantinople is expected to pave the way for the much-anticipated Casper update. This improvement will switch Ethereum from a proof-of-work model to proof-of-stake. It will also focus on scaling the blockchain so that the applications currently being developed atop the network can be used by much larger numbers of people without crashing the network in the same way that the early decentralised application CryptoKitties did back in 2017.

If the Ethereum network can successfully scale and a developer manages to create a must-have decentralised application on the network, the demand for Ether should also increase since the coins are used to power the applications and smart contracts hosted on the blockchain. If the rate of issuance stays at the levels shown today by Eric Conner, the price of a single ETH should increase much more rapidly than during the previous bull market.

Who knows, it may even reach the now-ridiculous-looking 2018 price prediction of Reddit co-founder Alexis Ohanian. The tech entrepreneur famously stated that he believed the price of ETH would surpass $15,000 by the end of last year.

 

Related Reading: Ethereum Constantinople Hard Fork Scheduled for Late February Following Recent Delay

Featured Images from Shutterstock.

The post Could Low Issuance Rate on Ethereum Mean Higher Prices? appeared first on NewsBTC.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Ether Zero (ETZ) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.094986 (-100%)

higher prices issuance mean could rate low

higher prices → Результатов: 74


Фото:

A Bug Making Ethereum Transactions on Exchanges Vulnerable Has Been Fixed

A bug centering around a new Ethereum token, GasToken, which was enabling abuse on cryptocurrency exchanges, appears to have been resolved. The details are provided in a report originally published on November 13, 2018, that discussed how the bug was exploited by attackers, and what digital platforms could do if they wished to protect their hot wallet funds.

2018-11-22 00:34


Ether Price Analysis: Historic Support Tested Amid Signs of Distribution

It’s been weeks since ether has seen a new high or a new low and the market has found itself range-bound. At the moment, we are seeing signs of distribution as large rounds of selling have remained present during key support tests:Figure 1: ETHUSD, 4 Hour Candles, Trading RangeSo far, for the last few weeks, ether has seen a trend of higher lows and low highs (the converging red trendlines).

2018-10-20 01:31


Bitcoin [BTC] Recovery Continues As Price Briefly Touches $6600

The Bitcoin price rose all the way up to trade above $6600 briefly. We noted in yesterdays technical analysis article that a lot of signs were pointing towards the bullish movement. Yesterday’s candle had a long upper wick showing that it wasn’t yet prepared to trade at the higher prices, but we see a small follow […] Bitcoin [BTC] Recovery Continues As Price Briefly Touches $6600 was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-8-16 16:34


Фото:

‘We Couldn’t Get Any Foreign Currency’ – Turkey’s Capital Controls Show Why Bitcoin Exists

Turkey introducing capital controls to stem the impact of its currency crisis means traders can “expect” higher Bitcoin prices on local exchanges, a well-known online commentator has suggested. ‘Expect Price Premium’ Tweeting August 13, BambouClub eyed spreads on P2P platform Localbitcoins, forecasting buy and sell asks to increasingly diverge as the country’s economic situation worsens.

2018-8-14 22:00


Фото:

Some Cryptos Trading 500% Higher on Bithumb, Market Manipulation Woes

Bithumb traders have recently experienced an abnormal surge in the price of some crypto, with tokens like Ethos trading six times over its average value only on the South Korean exchange. Many traders began to attribute these ludicrous prices to the Kimchi Premium, which local cryptocurrency traders have grown accustomed to over the most recent months.

2018-7-30 08:04