Ethereum Burning Reaches New High, Is ETH Warming Up For Another Rally?

While the global cryptocurrency market continues with its ubiquitous movement, Ethereum seems to be sneaking out to break a new record. The latest achievement Ethereum obtained is setting a new high in its burning-per-day mechanism.

Per a recent report from WuBlockchain citing data from oklink, Ethereum’s burning amount exceeded 3,000 ETH at a figure of 3,040 ETH on February 2. This new record sets the crypto asset burning rate highest point ever seen since November 10, 2022. According to the reporter, the primary source where the burning was aggressive was two popular decentralized exchanges, Uniswap and OpenSea. 

Over the past months, both platforms have recorded significant usage and trading volumes which correlate with the increased burning of ETH tokens. Data from CoinGecko shows Uniswap trading volume has moved from $558 million seen at the beginning of this year to $1.1 billion as of February 3, up by more than 50% over the last 25 days. 

Is ETH Warming Up For Another Rally

With an upcoming catalyst like the Shanghai upgrade coming soon to the Ethereum network, ETH could be in a warm-up stage before another rally. Following the demand for ETH surging, the crypto asset greed index has also made some significant movements in the past weeks ranging above 60 in recent days. 

The increase in the greed index signifies a massive level of FOMO and anticipation amongst ETH investors waiting for the right moment to buy and result in another rally. Data aside, so far, the Ethereum price chart has only indicated two possible scenarios, which are to either retrace a little bit more or proceed with another bullish trend. 

Looking at the 1-day time frame of the ETH/USDT price chart, we can see ETH recently tapped into external liquidity — a move that signifies a possible retracement to take out the liquidity of the buyers below. A retracement confirmation could mean ETH returns to the $1,300-$1,350 region.

Meanwhile, should ETH invalidate the possible retracement and tap into the $1,684 zone declining a retrace, we could see another upward rally as the crypto asset appears to be consolidating at the moment, waiting for a significant movement (expansion) either to the upside or downside. 

Ethereum Continues Recording New Highs

Notably, the burning rate hasn’t been the only new high Ethereum recurred in the past weeks. Last month, NewsBTC reported the total staked ETH on the Beacon chain reached an all-time high of over 16.16 million ETH. The figure cumulates to more than 13.28% of the total Ether supply and represents $26.13 billion at current prices

Out of the 16 million ETH staked, about 11.408 million ETH have been staked via staking services providers such as Lido, Coinbase, and Kraken, among others – representing 70.86% of the total staked on the Beacon chain. Lido dominates ETH staking with 29.3%, Coinbase controls 12.8%, while Kraken holds 7.6%, and Binance controls 6.3% of the total stake, according to Glassnode on-chain data.

Additionally, Ethereum total validators recently surpassed the 500,000 benchmarks and currently sit at 512,432 as of February 3, according to data from BeaconScan.