Ethereum Bulls Remain Confident
On November 15, @sassal0x, an Ethereum advocate, expressed confidence in the prospects of ETH. According to him, Ethereum’s strong fundamentals make it a better option for long-term value than other cryptocurrencies like Bitcoin and DeFi projects such as Uniswap and Aave.
Ethereum Price Movement
ETH is currently trading above $2,000 after doubling from its 2022 lows. The immediate support level is at $2,000, and prices are trending within a bullish bar from November 9. To validate @sassal0x’s outlook, there needs to be a solid close above $2,100 and the November 2023 highs.
Is ETH Ultra Sound Money Yet?
There is ongoing debate about whether Ethereum has achieved “ultrasound money” status. The implementation of EIP-1559 has led to the burning of over 3 million ETH since August 5, 2021. However, this has not been enough to make the coin ultrasound due to higher annual inflation rates than the burn rate.
Impact on DeFi and NFT Sectors
The recovery of the market could accelerate ETH burning as interest in the DeFi and NFT sectors grows. The extended bear market caused a decline in DeFi activity, with total value locked (TVL) falling to as low as $20.5 billion in 2023.
Hot Take: Ethereum’s Evolution Towards Ultrasound Money
Ethereum’s progress towards becoming “ultrasound money” hinges on factors such as its burning mechanism and inflation rates. Although confidence in its potential remains high, achieving this status is still a matter of debate within the crypto community.
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