Ethereum, the second-largest cryptocurrency by market capitalization, is nearing the $2,000 price level once more. It is currently trading at $1,981.32, according to CoinGecko data.
The 5.7% uptick in Ethereum’s price comes alongside a 24-hour trading volume of over $10 billion.
ETH burning reaches new highs
Ethereum’s price rise coincides with a record amount of ETH burned over the past 24 hours. David Hoffman, an Ethereum enthusiast, tweeted that a staggering 10,300 ETH had been burned, with about half of that amount consumed by Uniswap trades.
The increase in ETH burning is due to the current memecoin season taking place predominantly on the Ethereum mainnet, causing gas fees to rise and leading to more ETH being burned.
According to crypto analyst Mercek, the supply of ETH has decreased by 0.80% in the last 30 days, with the ongoing meme season potentially doubling the burn rate. Mercek suggests that the longer the meme season lasts, the more ETH will be burned, positively impacting ETH holders even if they dislike memecoins.
Open interest gaining momentum
In other Ethereum news, open interest (OI) in ETH is also seeing a significant uptick. Byzantine General, a crypto analyst, noted that Ethereum’s OI is “getting pretty crazy.”
Coinglass data shows that Binance, a leading cryptocurrency exchange, has the highest OI in ETH, with 1.27 million, representing 37.19% of total open interest. This increase in open interest suggests a growing number of investors are betting on Ethereum’s future price movements, adding another layer of bullish sentiment to the current market outlook.
