Benjamin Cowen recalled that by April 2024, the supply of ether, which became deflationary after the merger, was reduced by 455,000 ETH. However, since then, the supply has increased by about 150,000 ETH, and if it continues to grow at this rate, it could return to what it was before the merger, which happened more than two years ago, the analyst argues.
“If the ETH supply continues to increase by about 60,000 per month as it has since April, it will be back to where it was at the merger by December. If it follows 2016, the final ETH/BTC capitulation won’t start until September 2024, which would be plenty of time for the novelty of spot ETFs against BTC to potentially wear off.”
The trader noted that in a few years the value of Ether may be higher than its current price, but at the moment there are no prerequisites indicating an increase in the asset’s rate.
Recall that five ETH-ETFs will start trading on the Chicago Board Options Exchange (Cboe) on July 23. Earlier, Bitwise Investment Director Matt Hougan said that the Ether rate could update its historical maximum and rise above $5,000 after the launch of the ETH-ETF.
Source: Bits
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