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Ethereum, the second-largest cryptocurrency by market capitalization, is facing a significant economic shift. Its inflation rate has reached a two-year high of 0.74%. This development is raising concerns among investors and analysts. The surge in inflation threatens Ethereum's long-held status as "ultrasound money", the term refering to its supposed deflationary nature. The data comes from Binance's October 2024 Monthly Market Insights report. Ethereum's issuance rate is at its highest level since 2022. Reduced on-chain activity and lower burn rates are key factors. These changes are altering the asset's economic dynamics. The findings challenge a fundamental assumption about Ethereum. Many believed it could maintain a deflationary nature indefinitely, but this belief is now under scrutiny. Layer-2 solutions are playing a significant role in this shift. Networks like Arbitrum and Optimism have gained popularity, processing transactions off the Ethereum mainnet. These solutions offer lower gas fees for users. However, they also reduce the amount of Ether (ETH) burned through transaction fees. And this mechanism is crucial for Ethereum's economic model. The Ethereum Improvement Proposal (EIP) 1559 was introduced in 2021. It implemented a fee-burning mechanism. But with fewer mainnet transactions, the volume of burned ETH has declined. Binance's report highlights the impact of layer-2 adoption. "As L2s cannibalized network activity throughout the year - further impacted by broader market conditions - transaction fees and, consequently, burned fees on Ethereum declined," it states. Vitalik Buterin, Ethereum's co-founder, is focusing on network participation. He recently supported reducing the minimum ETH deposit for solo stakers. The current requirement is 32 ETH. Buterin suggests lowering this to 16-25 ETH. This change could increase network participation and might also influence Ethereum's economic model.

Sony's Ethereum Layer-2 blockchain, Soneium, has partnered with Ava Protocol, an event-driven EigenLayer Active Validated Service. The collaboration aims to support developers and creators. The partnership seeks to simplify users' experience on Soneium. It will bring automation to Sony's blockchain as Ava Protocol will execute transactions and smart contracts based on predefined conditions. The collaboration is part of the Soneium Spark incubation program and it will provide participants with an efficient, trustless automation solution. Creators will be able to tokenize Real-World Assets. This opens up new possibilities for fractional ownership and distribution methods. Ava Protocol is the first automation provider on Soneium, aiming to create opportunities for monetizing various assets. These include art, intellectual property, and physical goods. The protocol will also support recurring payments and other financial operations. Sam Shev, Head of Marketing at Ava Protocol, commented on the partnership. "Soneium is fostering an open internet that transcends boundaries," he said. "Ava Protocol's powerful automation tools will streamline processes and reduce barriers to entry." Chris Li, founder of Ava Protocol, emphasized the project's goal. "Ava Protocol is incredibly excited to join forces with Soneium," he stated. "Our technology provides creators and developers with the tools they need to be truly empowered." Sony's public Ethereum L2 blockchain is part of the company's strategic expansion. It aims to bring Web3 technologies to mainstream adoption with a help of a versatile, general-purpose blockchain. The platform seeks to integrate Web3 into daily applications. It aims to serve multiple needs across different industries globally. Soneium also wants to create a robust, developer-friendly environment. Sota Watanabe, Director of Sony Block Solutions Labs, noted the industry's transformation. He stated that the decisive moment will be whether Web3 companies can provide solutions for billions of users, because the goal is to make Web3 mainstream in the coming years. The partnership between Soneium and Ava Protocol represents a significant step in this direction. It combines Sony's distribution network with Ava Protocol's automation capabilities. This collaboration could potentially accelerate the adoption of Web3 technologies across various sectors.

Ethereum's native token, Ether, is poised for significant growth, analysts say suggesting a price target of $10,000 by 2025, analysts say. This projection is underpinned by a confluence of bullish fractals, long-term technical patterns, and favorable macroeconomic trends. At the forefront of this bullish outlook is a compelling price fractal identified by Julien Bittel, head of macro research at Global Macro Investor. Bittel's analysis draws parallels between current price action and the period from January 2023 to March 2024. During that earlier phase, ETH consolidated between $1,500 and $2,000 before surging to $3,500. The present price movements closely mirror this pattern. It suggests a similar consolidation phase that could precede a significant breakout. Based on this fractal analysis, Bittel proposes $10,000 as an achievable year-end target for Ether bulls. Further supporting the $10,000 projection is a technical indicator based on long-term Fibonacci retracement, exponential moving averages (EMA), and relative strength index (RSI). Historical data reveals striking similarities between the 2017-2018 and 2020-2021 bull runs. Sharp corrections followed periods of parabolic growth at that time. If ETH adheres to a similar trajectory from its 2022 low of $1,080, key targets emerge at the 1.618 Fibonacci extension of $6,978 and the 2.618 extension of $10,623. Ethereum's weekly chart provides additional context for this bullish thesis. The token is currently attempting to reclaim the 50-week EMA, which stands at approximately $2,749. Historically, the 200-week EMA, currently around $2,104, has marked the bottom of major corrections. Meanwhile, the RSI remains neutral at 46, far from overbought territory. This technical setup suggests ample room for upside movement if momentum shifts in Ether's favor. Broader macroeconomic factors also align with Ethereum's potential ascent. Global M2 money supply growth has shown a strong correlation with cryptocurrency prices. Bitcoin's historical performance is a great evidence to that. From 2011 to 2020, Bitcoin experienced massive gains during periods of aggressive M2 expansion, benefiting from inflationary concerns and increased liquidity. While 2022 saw a contraction in M2 growth, early signs of reversal are emerging in 2024. Central banks are beginning to ease monetary policies in response to ongoing economic uncertainties. This shift could reignite M2 expansion. And potentially catalyze another boom in cryptocurrency prices. Given the positive correlation between Bitcoin and Ethereum, a renewed surge in Bitcoin's value amid global liquidity expansion could lift Ethereum as well. This could lend credence to the $10,000 target. Ethereum's unique position in the cryptocurrency ecosystem further bolsters its growth potential. The platform's pivotal role in decentralized finance (DeFi) and its smart contract capabilities set it apart from other digital assets. These distinguishing features could amplify Ethereum's gains in a bullish market environment. Despite these positive indicators, it's crucial to acknowledge the inherent volatility of cryptocurrency markets. Regulatory changes, technological developments, and shifts in market sentiment can trigger rapid price swings. Investors should approach the $10,000 projection with cautious optimism. The speculative nature of such forecasts is to be taken into account. The combination of technical analysis and macroeconomic trends presents a compelling case for Ethereum's growth potential. The $10,000 price target by 2025, while ambitious, appears supported by multiple converging factors. However, as with any investment, thorough research and risk assessment remain paramount.

Ethereum, the second-largest cryptocurrency by market capitalization, is facing a significant downturn in network activity. New active addresses on the Ethereum network have plummeted by 43% over the past three months. This sharp decline underscores reduced investor engagement and network utilization. Data from The Block reveals notable fluctuations in Ethereum's network metrics. On June 27, new active addresses peaked at 138,620, but this figure dropped drastically to around 89,000 in early July. August saw the number fluctuate between 80,000 and 95,000. It briefly rebounded above 100,000 at month's end, however, the upward trend was short-lived. Despite a recent price uptick, new active addresses fell to 78,100 on September 24. This marks a 23.43% decline. Currently, the figure remains below 80,000. Total active addresses have also decreased. On June 9, they reached 702,857, but by September 22, this number had fallen to 574,073. This represents an 18.32% decrease from the June high. A drop in new active addresses often signals decreased user engagement, and this typically leads to reduced overall network activity and transaction volume. IntoTheBlock data supports this trend. The total volume of large transactions on Ethereum peaked at 2.91 million on July 5. By September 29, this had fallen to 1.79 million (a 38.4% decrease). Despite these concerning figures, there's a glimmer of hope. Market intelligence platform Santiment reports that Ethereum network activity is starting to pick up. However, this increase coincides with rising gas fees. Ethereum briefly lost its top spot in 24-hour Decentralized Exchange (DEX) volume on September 25. Solana temporarily claimed the lead with a volume of $1.123 billion, while Ethereum's volume stood at $1.118 billion. Ethereum has since reclaimed its leading position. Its 24-hour DEX volume now stands at $1.559 billion, an 11% increase. Solana's volume, while up 32.94%, remains lower at $1.251 billion. These fluctuations highlight the volatile nature of the cryptocurrency market. Ethereum's declining network activity, despite recent price gains, raises questions about its long-term user engagement and adoption trends, or - as someone might surmise - whether Ethereum is finally starting to loose its ground and give the initiative to its arch enemy - Solana. We'll have to wait and see if the numbers support this assumption.

The Tron blockchain network has recorded a surge in trading activity. Last week, it processed almost $100bn in on-chain volume. This spike comes as TRX, the network's native currency, trades near its all-time high. Blockchain analytics firm IntoTheBlock reported the substantial increase in Tron's on-chain activity. The data shows that Tether (USDT) transfers dominated the volume, as Tron has become the preferred network for USDT transfers. Tron currently manages over $61bn of USDT and now handles over 50% of all USDT movements. Users favor Tron for its lower costs and higher scalability compared to Ethereum. This preference persists even despite the rise of Ethereum layer-2 solutions. TRX transfers made up 2.6% of the total on-chain volume last week. Other significant TRC-20 tokens included SUN, BitTorrent, and JUST. These tokens are central to major decentralized finance protocols on Tron. The network has also seen increased meme coin activity. This follows the mid-August launch of SunPump by Tron co-founder Justin Sun. SunPump, a meme coin launchpad, has generated over $5.3m in revenue and has facilitated the launch of more than 86,400 meme coins. Dune Analytics reports that over 1,640 SunPump tokens are now listed on Sunswap. While the initial meme coin frenzy has cooled, both TRX and SunDog have benefited. SunDog, a prominent meme coin from SunPump, has surged over 720% since August 2024. TRX is currently trading about 10% below its all-time high. The overall uptrend remains intact despite recent fluctuations. A break above $0.15 could signal further upward momentum. Market analysts are watching for a potential breakout above August 2024 highs. The daily chart shows a bull flag formation: such a pattern often precedes significant price movements. The recent surge in network activity coincides with shifts in broader crypto market sentiment. Changes in U.S. monetary policy have influenced this trend. Investors are reassessing digital assets in light of these macroeconomic developments. Tron's performance underscores its growing importance in the cryptocurrency ecosystem. Its role in facilitating stablecoin transfers and supporting decentralized finance applications continues to expand. As the network processes unprecedented volumes, all eyes are on TRX's price action in the coming weeks.