Ethereum, remained relatively calm in May and fell as low as 0.3%. Bitcoin, on the other hand, experienced a more noticeable decline, falling by 7%.
Bitcoin is on track to record its first monthly loss since December, largely as the U.S. central bank is more likely to sustain higher interest rates. This situation pushed up the value of the US dollar, causing a decline in the crypto money market.
Experts, on the other hand, are looking for a new momentum for the rise in prices. According to data from Ultrasound.money, over 143,830 Ethereum tokens worth about $275 million have been burned during this month. This is a very important development for the network and token.
Ethereum is currently in a declining inflation phase and its supply growth rate is declining at 1.46% per year. It is predicted that approximately 2,441,000 ETH will be burned this year, which will be equivalent to approximately $4.5 billion.
On the other hand, had the network continued to operate as a Proof of Work protocol, it would have followed a 2% increase in supply.
According to the data, this deflationary structure helped reduce the correlation between BTC and ETH. The positive correlation between the two assets decreased this year and acted independently due to different tokenomics.
According to CryptoQuant data, over 13% of the total available Etherum has been staked, making it the lowest ETH balance ever on exchanges.
You can follow the current price action here.