%20named%20the%20fundamental%20factors%20that,%20in%20his%20opinion,%20will%20provoke%20the%20%22explosive%22%20growth%20of%20Ethereum.){kind=link}

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<p class="has-text-align-center"><em><strong>Aaron Arnold</strong> outlined three factors that will provoke a rise in the price of <strong>Ethereum</strong>.</em></p>



<p>Analyst <strong>Aaron Arnold</strong> on his YouTube channel (952 thousand subscribers) named the fundamental factors that, in his opinion, will provoke the &#8220;explosive&#8221; growth of <strong>Ethereum</strong>.</p>



<p>One of the key features of <strong>Arnold </strong>is the recent change to the <strong>altcoin blockchain</strong>, which resulted in the introduction of a mechanism for burning <strong>digital coins</strong>. </p>



<p>On August 5, the <strong><a href="https://ethernodes.org/london" target="_blank" rel="noreferrer noopener">London update</a></strong> was released on the <strong>Ethereum network </strong>, which completely changed the mechanism for calculating transaction fees. Some of the commissions that miners previously received as a reward are now <strong>burned</strong>.</p>



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<p class="has-text-align-center"><em><strong>Burning tokens </strong>is the destruction of a certain number of <strong>tokens </strong>to reduce their number in circulation. </em></p>



<p class="has-text-align-center"><em>This method is used to combat inflation and increase the value of <strong>cryptocurrencies</strong>. </em></p>



<p class="has-text-align-center"><em>All <strong>coin burning </strong>operations are recorded on the <strong>blockchain </strong>as a transaction, so anyone can verify that the coins have been destroyed.</em></p>
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<p>Since the activation of the update, more than 134.8 thousand <strong>Ethereum </strong>worth $ 427.5 million have been burned in the <strong>altcoin network</strong>, according to the ultrasound.money service, which tracks the destruction of coins in the <strong>altcoin network</strong>. The average burn rate per minute is 3.77 <strong>Ethereum</strong>.</p>



<p>The analyst believes that the second growth factor is the decline in net inflation in <strong>Ethereum</strong>. </p>



<p>According to <strong>Arnold</strong>, at the moment, the net inflation of <strong>altcoin </strong>in annual terms is 1.1%, while the same figure for <strong>bitcoin </strong>is at 1.75%.</p>



<p><strong>Arnold </strong>recalled the multiple growth of funds blocked in the decentralized finance (<strong>DeFi</strong>) sector. In his opinion, this is the third factor that contributes to the rise in <strong>price of Ethereum</strong>. </p>


<p><iframe width="1028" height="578" src="https://www.youtube.com/embed/dhTPEduP-E0" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></p>



<p>On January 1 of this year, the volume of funds blocked in <strong>DeFi </strong>was $ 16 billion, the analyst noted. On August 30, that figure is $ 82 billion (up 412% YTD), according to <strong>DeFi </strong>Pulse.</p>



<p>Since the beginning of this year, <strong>Ethereum </strong>has risen in price by 328%. On August 30, <strong>altcoin </strong>is trading at $ 3.16 thousand, and its capitalization is $ 376 billion, according to CoinGecko. </p>



<p>In mid-May, <strong>Ethereum </strong>renewed its all-time high at around $ 4.3 thousand (an increase of 482% since the beginning of the year).</p>



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<p><em>Read More&#8230;</em></p>



<p><a href="https://cointopsecret.com/2021/08/12/ethereum-for-20-thousand-in-2022-why-altcoin-can-grow-by-525/">“Ethereum for $ 20 thousand in 2022”. Why altcoin can grow by 525%</a></p>



<p><a href="https://cointopsecret.com/2021/08/12/almost-100-million-worth-of-digital-coins-were-burned-on-the-ethereum-network-in-a-week/">Almost $ 100 million worth of digital coins were burned on the Ethereum network in a week</a></p>
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