Ethereum (ETH) Burning Sets New High as Sentiment Booms: Details

The amount of ETH burned on Feb. 2 exceeded 3,000, which was a new high since Nov. 10, 2021.

According to Wu Blockchain: “The burning amount of Ethereum reached 3040 on February 2, reaching a new high since November 10 last year. The main burning sources are Uniswap and OpenSea. The cryptocurrency greed index has remained around 60 for several days.”

The burning amount of Ethereum reached 3040 on February 2, reaching a new high since November 10 last year. The main burning sources are Uniswap and OpenSea. The cryptocurrency greed index has remained around 60 for several days. https://t.co/fT66f684lJ pic.twitter.com/uToCDwOYZt

— Wu Blockchain (@WuBlockchain) February 3, 2023

According to data from Coinglass, the funding rate for ETH on Binance is still positive. To assess the sentiment of leverage traders, analysts monitor the funding rate. The more excited that traders are about price prospects and the more willing they are to pay a premium to maintain their upside bets, the higher the funding rate.

A mechanism to burn a portion of user fees was introduced in August last year via the Ethereum Improvement Proposal (EIP)-1559. In essence, the EIP ties network utilization to the amount of Ether burned.

ETH price action

According to data from CoinMarketCap, at the time of publication, the price of Ether was $1,644, a loss of 1.53% from the previous day. Yesterday, Ethereum reached $1,700 for the first time since Sept. 12.

According to estimates from Reuters, the U.S. nonfarm payrolls (NFP) data, which is set to be released at 1:30 p.m. UTC today, Feb. 3, is likely to reveal that the largest economy in the world added 185,000 jobs in January after a 223,000 job gain in December.

In January, Ethereum (ETH) had a strong performance, ending the month with a gain of over 30%. It also started trading at levels last seen before FTX’s sudden implosion as a result of the price increase.