 ▲ Ethereum (ETH) |
AMB Crypto, a media specializing in virtual assets, reported that the staking size of Ethereum (ETH) increased to 32.5 million ETH, but both the staking reward rate and the inflation rate decreased.
The reward rate refers to the annual rate of return that users receive through Ethereum staking. Essentially, it is the interest that users earn for helping to secure the network.
The inflation rate reflects the rate of increase in the total supply of Ethereum. This affects inflation as new Ethereum tokens are created as staking rewards.
A reduced reward rate means that users earn fewer new Ethereum tokens staked in the short term. A decrease in the inflation rate means that the total supply of Ethereum is growing relatively slowly.
If the Ethereum token price maintains a solid level in a situation where the rate of increase in Ethereum supply is slow, it may have a positive impact on the price increase of Ethereum in the long term in that it promotes price increases.
However, Cointelegraph, a cryptocurrency media outlet, noted that the Ethereum futures premium in the derivatives market, which recorded 15% on the 6th (local time), fell to 13% as of the 10th (local time).
In addition, it was confirmed that ETH options 25% delta skew recorded its last strong performance as of May 29th. However, it recently recorded a level of -6%, appearing to be neutral and balanced. This suggests that both whales and market makers view the likelihood of both positive and negative price movements in Ethereum as having similar probabilities.
The media diagnosed that the probability of Ethereum exceeding $4,000 in the short term is low, considering the weak bullish signals in Ethereum futures and options amid the possibility of launching an Ethereum spot exchange-traded fund (ETF) in the U.S. market.
