In recent months, the decentralized exchange (DEX) token $ETHETF has been gaining significant traction in the market. This surge in popularity can be attributed to the ongoing burn mechanism employed by the token, which aims to reduce the total supply by 21 million tokens, equivalent to approximately 21% of the supply.
Today alone, 1 million $ETHETF tokens were burned, bringing the total manually burned tokens to 14 million. Additionally, another 6 million tokens were burned via a 2% buy tax, resulting in a total reduction of 20 million $ETHETF tokens, valued at over $200,000.
This reduction in supply has attracted new investors who see $ETHETF as one of the most promising deflationary altcoins of 2023. With demand on the rise and a limited supply, the value of $ETHETF is expected to increase significantly.
Following its sensational stealth launch, $ETHETF experienced a remarkable 218% surge in the first 48 hours of trading. To further enhance the token’s value, the development team introduced a token burn program on November 16. Inspired by Bitcoin’s fixed supply of 21 million coins, this burn mechanism involves sending tokens to a null address on the blockchain, effectively eliminating them from circulation.
The deflationary effect resulting from the token burn program has positively impacted the tokenomics of $ETHETF. Despite a temporary retracement after its initial surge, the token is currently trading at $0.01030, with upside momentum gaining traction. The price has already experienced a 27% gain after establishing support at $0.008.
While $ETHETF remains a relatively low-cap proposition with a market cap of just $831,000, its potential for growth is evident. Other meme coins launched on DEX platforms often reach market caps of $5 million, suggesting that $ETHETF could potentially achieve a 6-fold return from its current levels.
The token has also been gaining traction among investors, as reflected in the steady growth of token holders. In just two weeks, the number of token holders has increased by 50%, reaching a total of 751. This growing community further solidifies the potential for a significant increase in demand for $ETHETF.
Furthermore, the project’s development team has demonstrated its commitment by locking more than $500,000 of liquidity. This move provides additional reassurance and strengthens the mid-term prospects of $ETHETF.
In a potentially pivotal event, Fidelity, an asset management giant, has submitted 19b-4 paperwork to launch an Ethereum Spot ETF on US markets. This move signifies a growing interest from traditional financial institutions in the Ethereum ecosystem. Fidelity aims to act as its own custodian for the ETF, a departure from the trend of utilizing Coinbase as the custodian. Coinbase currently serves as the custodian for 68% of Ethereum Spot ETFs.
This development could be a catalyst for an $ETHETF breakout, as it signifies increased market confidence and validates the potential of Ethereum as a viable investment option.
A recent report by CryptoQuant has highlighted a notable increase in Ethereum holdings by major financial institutions in November. Ethereum has emerged as a preferred digital asset among investors, thanks to its widespread trust, fund offerings, and ETF products. These institutional accumulations further strengthen the investment case for $ETHETF.
With the ongoing burn mechanism reducing the supply of $ETHETF tokens and institutions showing increasing interest in Ethereum, investing in $ETHETF presents an attractive opportunity. While the token remains relatively low in market cap compared to similar DEX-launched meme coins, its potential growth and the positive market sentiment around Ethereum ETFs make it a compelling investment option.
However, it’s crucial to remember that investing in cryptocurrency is high-risk. This article provides informational purposes only and does not constitute investment advice. As with any investment, it’s essential to conduct thorough research and carefully consider the risks involved before making any decisions.