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A recent report by crypto ranking platform CoinGecko reveals the progress of Ethereum (ETH) burns since the start of 2024. According to the report, the Ethereum network has burned 465,657 ETH since the beginning of the year, as of Aug. 5. Since EIP-1559 was implemented in June 2021, 4.36 million ETH have been burned.
While March 2024 had the largest monthly burn for 2024 at 147,620 ETH, it was still lower than the all-time high of 398,061 ETH burned in January 2022.
In July 2024, 17,114 ETH were burned, a monthly all-time low for 2024 and a 35.0% fall from June. Meanwhile, 147,620 ETH were burned in March 2024, setting a monthly record for 2024.
Meanwhile, 107,725 ETH were burned in Q2, 2024, a 67.7% decrease from Q1. In the first quarter of 2024, 333,555 ETH were burned.
Tomiwabold OlajideUniswap remained the top ETH burner, burning 71,915 ETH in 2024; ETH transfers were the second largest contributor to ETH burns, burning 33,538 ETH this year so far. Tether (USDT) was the third-largest burner in 2024, burning 23,332 ETH. Banana Gun (BANANA) was the fourth-largest burn contributor, burning 11,060 ETH.
ETH reversal might be on horizon
Ethereum, the second-largest cryptocurrency by market cap, has recently witnessed a major price decline, prompting investors to speculate on whether the bearish trend might continue. However, futures market data suggests that a reversal could be on the way, a recent CryptoQuant analysis indicated.
Ethereum's recent drop has sparked long liquidations, hitting levels not seen since November 2022. This significant liquidation suggests a cooling of the futures market, as many leveraged positions have been flushed out.
Such a scenario may pave the way for fresh interest on the futures market. With the futures market potentially reset, if demand returns, Ethereum may be primed for a major price rally in the long term.
The cooling of the futures market may attract new investors and stabilize the market, pointing to a possible comeback from the recent price downturn.
At the time of writing, ETH was up 2.4% in the last 24 hours to $2,695 and up 12% weekly.
Denys Serhiichuk
