November’s breakout decentralized exchange (DEX) token, $ETHETF, is rapidly approaching its 21% total supply burn target. With 1,000,000 tokens burned in a single day, the market sentiment has turned bullish, presenting an opportunity for investors.
The burn mechanism of $ETHETF is a dynamic one, aiming to reduce the token’s supply by 21 million tokens, which is approximately 21% of its total supply. Currently, 14,000,000 tokens have been manually burned, and an additional 6,000,000 tokens have been burned through a 2% buy tax. In total, 20,000,000 $ETHETF tokens, valued at over $200k, have been removed from circulation, resulting in a 20% reduction in supply.
This milestone of burning over 20% of the total $ETHETF supply signifies the project’s commitment to reducing supply and increasing value for the community of investors. The reduced supply has attracted new investors who see $ETHETF as one of the best deflationary altcoins of 2023.
$ETHETF experienced an impressive start with a stealth launch, which caused its price to skyrocket by 218% within the first 48 hours of trading. On November 16, the project introduced a token burn program with the goal of reducing the token’s supply by 21%, mirroring Bitcoin’s 21 million supply. By sending tokens to a null address on the blockchain that only has a receive function, $ETHETF effectively eliminates those tokens from circulation, creating a deflationary effect on tokenomics and increasing its price.
After a retracement from its initial skyrocketed price, $ETHETF is currently trading at $0.01030, representing a 24-hour change of -5.89%. However, upside momentum has started to pick up, with a 27% gain achieved after establishing support at $0.008. The chart analysis suggests that $ETHETF is forming a bullish pendant pattern, indicating a potential major move to the upside. This positive market sentiment is reflected in the steady growth in the number of token holders, which has increased by 50% to reach a total of 751 within two weeks.
Despite the growth in the number of token holders, $ETHETF remains a low cap proposition, with a market cap of just $831k. This is in stark contrast to similar meme coins launched on decentralized exchanges, which often reach market caps of $5M. The current low market cap suggests that $ETHETF has the potential for a significant return on investment, possibly up to 6 times its current value.
The development team of $ETHETF has demonstrated their commitment to the project by locking over $500k of liquidity, providing additional reassurance to investors. This mid-term play strengthens the project’s position in case of any major news events related to Ethereum ETFs, potentially driving a surge in volume.
In a potential catalyst event for a breakout, Fidelity, an asset management giant, has submitted 19b-4 paperwork to launch an Ethereum Spot ETF on US markets. Unlike other ETFs, Fidelity has taken the bold move of acting as its own custodian instead of relying on Coinbase. This strategic decision may attract attention and confidence from investors, further boosting the market sentiment surrounding $ETHETF.
A report by CryptoQuant has identified a sudden increase in Ethereum holdings by major financial institutions in November. This indicates that Ethereum, including assets like $ETHETF, is becoming favored among investors due to the trust, funds, and ETF offerings associated with it.
With the market excitement surrounding Fidelity’s Ethereum Spot ETF and the institutions’ accumulation of Ethereum, it is a prime time for investors to consider investing in $ETHETF. The ongoing burn mechanism, reduced supply, and promising price action make $ETHETF an attractive opportunity in the DEX market. However, the cryptocurrency market is highly volatile and carries substantial risks, so investors should carefully evaluate their investment decisions.
Disclaimer: Cryptocurrency is a high-risk asset class, and this article is provided for informational purposes only and should not be considered as investment advice.