• Crypto holders in Singapore prefer Ethereum over Bitcoin, according to a survey by cryptocurrency exchange Gemini.
  • A total of 50,000 Ethereum worth $165 million burned since the London hard fork makes ETH more likely to turn deflationary.
  • Ethereum staked on the ETH 2.0 staking platform hits a new all-time high.

Ethereum’s future is likely to be deflationary with the higher level of  ETH being burned. The amount of ETH held on exchanges is dropping consistently. 

BTC popularity plummets as traders prefer deflationary cryptocurrency ETH

A recent survey by cryptocurrency exchange Gemini revealed that Ethereum is the most popular cryptocurrency in Singapore. Nearly 78% of crypto investors in Singapore hold Ethereum, and 69% have Bitcoin. 

Ethereum’s rising popularity can be attributed to the increase in the number of deflationary blocks being produced since EIP-1559 went live with the London hard fork. $165 million worth of ETH has been burned in the past ten days. 

As more Ethereum is pulled out of circulation, analysts note a rise in Total Value Locked (TVL) on DeFi and a spike in volume of Ethereum staked in the ETH 2 contract. 

Guy, a cryptocurrency analyst, and YouTuber at CoinBureau, states that the Ethereum locked in DeFi is being held in smart contracts. It is most likely used in DeFi protocols to supply liquidity, earn interest or other types of yield farming tactics. 

The ETH representing DeFi TVL is used for a specific purpose, and the investors that hold this Ethereum are less likely to sell it in the short term. At the same time, Ethereum staked in the ETH2 contract has hit a new all-time high of 6.72 million ETH. Ethereum that is locked away is out of the circulating supply for the long term, which fuels the bullish outlook of traders. 

The total value of ETH staked in the ETH2.0 deposit contract

The total value of ETH staked in the ETH2.0 deposit contract

Ethereum has outperformed Bitcoin in terms of transaction volume, daily trade volume and return on investment, according to data from the Blockchain Center. 

Further, as the Ethereum network heads toward the “Merge,” the upgrade that swaps the current proof-of-work (PoW) consensus mechanism with energy-efficient and secure proof-of-stake (PoS), Ether’s inflation is expected to drop, leading to deflation. 

Traders expect “deflation” to positively impact Ethereum’s price, which makes it more attractive than Bitcoin.

According to FXStreet analysts, Ethereum’s next price target is $4,000, and this is a significant psychological level for the altcoin’s price rally. There is a surge in Bitcoin reserves on exchanges; however, in the case of Ethereum, the opposite is true. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

LUNA price approaches a launchpad, but will buyers come together?

LUNA price approaches a launchpad, but will buyers come together?

LUNA price shows a sign of healthy retracement after an egregious spike in buying pressure that triggered a quick and swift run-up. The ongoing pullback will provide investors with another chance to rally.

More Terra news

Why buying Solana price at these levels will provide the best ROI?

Why buying Solana price at these levels will provide the best ROI?

Solana price seems to be hovering inside a consolidation with no signs of a breakout. Investors can expect a dip to $31.66 or $24.52 levels in the near future as liquidity below these levels remains untapped.

More Solana news

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price has been hovering around a significant barrier for roughly three months with virtually no momentum to move above it. This development might be primed for a strong move but the directional bias remains unknown. 

More Shiba Inu news

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin price shows lackluster performance despite the announcement of BlackRock’s entry into crypto. Due to the spotlight on Ethereum and its upcoming Merge update, investors seem to be neglecting BTC.

More Bitcoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP