ETH surge and huge burns

Market situation

Bitcoin had a brief moment yesterday when Bitcoin rose from 61,200 to 57,600. Within 3 hours, the BTC price rebounded to over $ 62,478. Many people believe that the strong volatility of the BTC price in a short period of time is due to the liquidation of many long and short orders.

However, the number of liquidated long / short orders was just over $ 293 million. The liquidation price can be up to USD 1 billion at times, so the liquidation level on the previous day is not high.

During the day, as BTC continued to move sideways above $ 60,000, many Altcoins began to rise sharply, such as DOGE, BNB, SOL, … In particular, the large ETH coin rose and set new highs. Investors are looking forward to the strong growth of ETH and the start of the altcoin season.

In the course of the past day, more Bitcoins were deposited on the exchange than withdrawn. However, the current long-term trend in the number of BTC on exchanges continues to decline.

As for Ethereum, ETH continues to be pulled from the exchanges despite a recent high. ETH’s long-term trend towards exchange is becoming increasingly scarce.

After ETH’s EIP 1559 proposal officially went live, this led to ETH deflation. The amount of ETH burned at the time of going to press is 667,407. On average, 5.84 ETH are burned per minute. Although the supply is unlimited, burning ETH also helps manage the supply and ETH inflation has dropped to 2.1% per year.

It is the scarcity of BTC, ETH and the continued rise in demand that is the long-term cause of the price spike. Like last year, large corporations and banks started taking an interest in crypto, but this year BTC has gotten deep into finance and politics and is accepted as a currency by one country. Both BTC and crypto have grown and matured a lot.

Companies promote and support crypto

Recently, Mastercard partnered with the digital asset platform Bakkt to make it easier for merchants, banks and fintechs in the US to adopt and deliver crypto solutions and services.

Mastercard also expressed a desire to provide “a safe space” for governments and private sector banks to find out how a national cryptocurrency (CBDC) should work.

Big crypto companies are also leveraging the momentum of crypto and are ready to spend a lot on advertising and attracting new users. Earlier this year, FTX secured the naming rights to the home stadium of the NBA basketball team Miami Heat for $ 135 million.

Recently, the FTX exchange has continued to invest large sums of money to have a promotional slot in the Super Bowl tournament. It is one of the most watched rugby league events in the US. Although FTX did not disclose the content of the ad or the cost, NBC has charged up to $ 6.5 million for commercial slots in the upcoming Super Bowl LVI.

Next, the Adobe company is launching a system integrated with Photoshop that can prove that the NFT seller is the one who made it. It’s called Content Credentials, and NFT merchants can link their Adobe ID to their crypto wallet so that compatible NFT marketplaces can view a verified certificate proving that the source of the work is authentic.

India, once a country with a complicated situation for cryptocurrencies, has officially commented on this market. The Indian government plans to introduce regulation of the cryptocurrency by the next general budget, i.e. in February next year.

In addition, India is likely to regulate cryptocurrencies as an asset class, much like the way commodities are managed, with reasonable taxation of transactions and profits, the news agency reported. In June, the government reported that the Securities and Exchange Commission of India (SEBI) would oversee regulations for the crypto sector once cryptocurrencies are classified as an asset class.

Another big event that caught a lot of attention was the official name change of the Facebook company to Meta. With the new name, the Facebook company wants to focus on the development of Virtual Reality (Metaverse) and will invest more than 10 billion US dollars in the development of this technology. Facebook can embed ads into virtual reality or use NFT. This will be one of the things that will keep NFT growth.