Ethereum Supply Diminishes to a Record Low Amid ETH Breaking the Record at $4,400

Cryptocurrencies have enjoyed a rollercoaster ride this quarter as they continue smashing records. Just over a week after Bitcoin hit an all-time high (ATH) of $66,900, Ethereum has followed its footsteps by breaking the record at the $4,400 level. (77).jpg

On the other hand, SHIB, a Dogecoin-inspired meme cryptocurrency, recently scaled the heights with a 46% increase in just a couple of days. 

Therefore, it shows it is the crypto season as coins continue showcasing their potential. 

Ethereum’s record-breaking surge is being attributed to diminished supply and high token circulation. Lucas Outumuro, the head of research at IntoTheBlock, explained:

“ETH price is breaking new highs while a record amount of 16.9K ETH was burnt in the past 24 hours. This also brings ETH’s issuance to a record low of -1.1%.”



Market insight provider Santiment added:

“Ethereum has just hit a new all-time high of $4,400 after reaching a massive token circulation output day of 1.74M ETH, creating the bullish divergence. On-chain metrics appear quite healthy for the number two coin by market value.”



Meanwhile, Ethereum supply in smart contracts recently reached a historic high of 28%. Smart contracts are self-executing agreements based on blockchain technology that decreases the demand for centralized intermediates. They have been in high demand in booming sectors like decentralized finance (DeFi) and non-fungible tokens (NFTs). 


Total value locked in Ethereum 2.0 soars

More investments continue to trickle into the Ethereum 2.0 deposit contract because the total value locked (TVL) reached an ATH of 8,033,922 ETH.


Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that sought to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.


ETH 2.0 is expected to improve scalability through sharding. Furthermore, it is touted to be more environmentally friendly and cost-effective.


With Ethereum hitting a record high, whether this is the start of the altcoin season remains to be seen.

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Bitcoin’s Dominance Skyrockets as Market Capitalization Tops $1 Trillion

Bitcoin’s latest momentum has made the market capitalization top the $1 trillion mark, a milestone first seen in February.

The leading cryptocurrency was up by 5.91% in the last 24 hours to hit $54,517 with a capitalization of $1.03 trillion during intraday trading, according to CoinMarketCap.

Santiment believes Bitcoin’s dominance and price have been driven by a surge in token circulation. The on-chain metrics provider explained:

“Bitcoin dominance has been on a major rise the past couple of days, and $54.6k has been breached for the first time since May 12th. Our NVT Token Circulation model is indicating October is the first month we’re seeing a bullish divergence since February.”


Santiment previously stated that Bitcoin’s price could witness a surge given that its circulation had reached levels last seen in July. The notion presented was that Bitcoin’s price is usually tagged along whenever circulation rises.

Will an ATH price be witnessed in the Bitcoin market soon?

According to Lex Moskovski, the CIO of Moskovski Capital,said:

“Record amount of Bitcoin has been moved in the last 2 weeks. Something’s brewing. Gun to head, ATH may happen sooner than we think.”


Therefore, Moskovski believes the record-high BTC transactions witnessed could send the price through the roof, given that an all-time high (ATH) price of $64.8K was set in mid-April. 

By scaling above the $52K level, Bitcoin was able to breach a significant resistance area. Data analytic firm IntoTheBlock said:

“Bitcoin surpasses once again the $52K barrier for the first time since September 7th. The IOMAP reveals strong support right below $50K while approaching a highly contested area around $52,938. At this range, over 353.78K addresses previously bought 212,000 BTC.”

On the other hand, market analyst under the pseudonym CryptoHamster noted:

“Bitcoin has broken the resistance line – and the descending triangle (to the upside). Generally, it is a very bullish sign. Altcoins also support this growth, but one has to be careful about the false breakouts. It would be nice to see the retest and rejection.”


CryptoHamster believes that Bitcoin should retest the $51K level for a breakout to be fully confirmed. 

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Bitcoin (BTC) $ 27,451.35 1.20%
Ethereum (ETH) $ 1,655.04 4.48%
Litecoin (LTC) $ 65.58 4.08%
Bitcoin Cash (BCH) $ 245.96 3.29%