# 🟣 There’s No $ETH Left To Buy!

> Nobody Holds Enough $ETH 

**Published by:** [Web3 Academy](https://paragraph.com/@web3academy/)
**Published on:** 2024-02-12
**Categories:** web3, cryptocurrency
**URL:** https://paragraph.com/@web3academy/the-ethereum-supply-shock

## Content

GM Swifties DOers! 😎 Remember when $ETH was dead checks notes just before Christmas? 😅 Peter McCitrix 🏴‍☠️ @PeterMcCormack Remember ETH? 861 0:14 • 21 Dec 2023 Yeah, it didn’t die. Quite the opposite. In less than 2 months, the perception towards Ethereum has done a complete 180. Ethereum became as beloved by degens as the Chiefs are by Swifties. 🫶 The Bitcoin ETF hype has now shifted towards Ethereum, and other smart contract blockchains *cough* Solana *cough* still face issues, leaving the door open for Ethereum to have its long awaited moment this cycle. Today, I wanted to highlight the various things that have been happening on Ethereum, as well as what’s coming. Spoiler: It’s EXTREMELY bullish. 🐂 From the app-layer perspective, we have:Farcaster (onchain social) going nuts.ERC-404 becoming the new craze in NFTs.ENS partnering with GoDaddy.Multiple L2s launching on Ethereum.All of that means that more adoption and thus more transactions are occurring on Ethereum. We already talked about each innovation in past newsletters. But what’s important to understand is that more transactions on Ethereum = more $ETH being burned. 🔥 At the moment, an average of 0.2% of the $ETH supply is being burned per year. 🤯Source: UltraSoundMoneyAs more $ETH is being burned, we also have a significant amount of $ETH being removed from circulation (aka can’t be sold). Here’s a TL;DR on the forces altering the supply dynamics of ETH (we’ll dive deeper into each point below):25% of all $ETH is now staked.EigenLayer re-staking just hit $5 billion TVL.Final decision for ETH ETF set for July 2024.The EIP-4844 upgrade is scheduled for mid-March.All in all, Ethereum is becoming much more secure and scalable, while $ETH is becoming more scarce. Friends, everything’s pointing to 1 thing: Nobody has enough $ETH. Let’s dig deeper. ⏬💪 Ethereum Fundamentals Have Never Looked BetterOut of all $ETH in existence, 25% of it is being staked at a 5% yearly APY.Source: UltraSoundMoneyBecause validators earn while securing Ethereum, there’s no reason for staking to not continue to increase in popularity. Especially considering that we now also have re-staking with EigenLayer. Re-staking enables Ethereum validators to secure multiple applications by putting their already staked ETH to work, boosting Ethereum's scalability and efficiency.We wrote extensively about EigenLayer & its airdrop here. Almost 2.5 million $ETH ($6.2 billion) has already been locked in EigenLayer. Source: DeFiLlamaDemand for re-staking is very high. Keep in mind that EigenLayer limits the amount of $ETH that can be re-staked by frequently opening and closing pools, which fill up almost instantly. EigenLayer @eigenlayer EigenLayer Restaking Reloaded! From NOW until Feb 9th, 12 PM PT, dive back into the world of LST restaking! All pools are fully uncapped, featuring both the existing pools and welcoming new partners @fraxfinance, @liquid_col, & @0xMantle. 1,963 1:31 • 6 Feb 2024 The hype around EigenLayer is very understandable – Ethereum stakers earn extra by re-staking $ETH, while also farming the EigenLayer airdrop simultaneously. Okay, all of this is locking up a bunch of $ETH, which is bullish. But what’s even more bullish is the coming Ethereum ETF. 🚀 BlackRock & Ark Pushing for the Ethereum ETF In November, BlackRock filed for an Ethereum Spot ETF. Ever since, the CEO, Larry Fink, has praised Ethereum over and over again. Crypto Rover @rovercrc BlackRock CEO Larry Fink has said that he sees value in having a Spot #Ethereum ETF. 1,213 0:13 • 9 Feb 2024 With BlackRock having a 576-1 ETF approval rate there's a huge chance that their Ethereum ETF application will be approved. Additionally, Ark Invest is also pushing for the Ethereum ETF, and they recently said they want to add staking to their ETF – imagine how much $ETH will be locked up if this happens. The Block @TheBlock__ ARK Invest and 21Shares address cash creation and redemption process in latest spot Ethereum ETF filing theblock.co ARK Invest and 21Shares address cash creation and redemption process in latest spot Ethereum ETF... A spot ethereum ETF proposal from ARK Invest and 21Shares will only have a process to deliver cash in its creation/ redemption process. 64 0:34 • 8 Feb 2024 Lastly, a final decision is coming in July 2024. Whale @WhaleFUD JUST IN: A final decision on the Ethereum ETF set for July 2024. 659 14:09 • 7 Feb 2024 Now, before we get the green light for the ETH ETF, the SEC needs to officially classify Ethereum a non-security (which it clearly is). Ball’s in your court Gary. As a reminder, here’s what the ETF did for Bitcoin. First up, $2.2 billion (net) have gone into the Bitcoin ETF. Eric Balchunas @EricBalchunas Nice.. +400m for the day, +$2.2b cumulative 224 20:35 • 9 Feb 2024 Secondly, outflows are slowing down. James Seyffart @JSeyff Lowest outflow day yet for $GBTC -- $51.8 million BitMEX Research @BitMEXResearch Bitcoin ETF Flow - 9th Feb GBTC Outflow $52m 964 5:16 • 10 Feb 2024 Thirdly, the Bitcoin ETH has become the most popular ETF in the U.S. Documenting ₿itcoin 📄 @DocumentingBTC ₿𝗥𝗘𝗔𝗞𝗜𝗡𝗚: #Bitcoin ETFs officially the most popular ETFs in Wall Street history! 4,277 18:48 • 9 Feb 2024 Boomers clearly love the Bitcoin ETF and it’s likely that the Ethereum ETF will be as popular. If $2.2 billion were invested in Ethereum ETFs at current prices, it would purchase 880,000 $ETH, representing 0.7% of the total Ethereum supply. Not to mention all the other Ethereum ETFs all over the world. CoinGecko @coingecko FUN FACT: There are currently 27 active #Ethereum ETFs worldwide, with a combined $5.7B in total assets. Among them, 20 are spot ETFs, while 7 are futures ETFs. 359 7:59 • 6 Feb 2024 Recap:Staking’s on the riseRe-staking’s on the riseEthereum spot ETFs are comingThese factors will reduce the supply of ETH that’s ‘sellable’. Coupled with the fact that 0.2% of the total Ethereum supply is burned annually, we're witnessing a supply shock that is poised to drive up the price of $ETH. 🚀 As the bull market intensifies and more users engage with the Ethereum network, this effect is expected to amplify. Fundamentally, Ethereum has never looked better. ⚙ EIP-4844 Scheduled for March 13thSpeaking of fundamentals, Ethereum’s coming upgrade (EIP-4844) has been set for March 13th. sassal.eth/acc 🦇🔊 @sassal0x Ethereum's next network upgrade, Dencun, will go live on mainnet on the 13th of March. EIP-4844 is coming! 1,331 19:50 • 8 Feb 2024 This upgrade will lower the L2 gas fees exponentially. Initially, this will lead to less $ETH being burned (as gas is lower). However, over time, lower gas fees should drive more activity and onchain adoption to make up for it. Web3 Academy 🟣 @web3academy_ GM! Nobody should pay more than $1 in gas fees when using Ethereum! GM back if you agree! 16 18:03 • 7 Feb 2024 😨 You (and I) Don’t Have Enough $ETH0.2% of $ETH supply burned annually, reducing available ETH.25% of $ETH supply staked, further reducing availability.Upcoming Ethereum ETFs expected to decrease available ETH.EIP-4844 to lower L2 gas fees, increasing transactions significantly. All indicators show a rising demand for $ETH, whose supply is shrinking considerably. This is the most basic law of economics. If demand is increasing, and supply is decreasing, then the price has no choice but to pump. Web3 Academy 🟣 @web3academy_ The last thing you want to be right now is bearish on Ethereum. 12 22:35 • 6 Feb 2024 Nobody’s bullish enough! 🐂Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤How'd you feel about our read today?⭐⭐⭐⭐⭐ Loved it!⭐⭐⭐ Decent!⭐ Kyle, step it up!Are You Fairly New to Crypto & Web3?Let us help you wrap your head around this industry that’s constantly transforming. Take our Free 1-hour Web3 Rabbit Hole Course to learn the foundational components you need to start building and investing successfully.Take FREE Rabbit Hole Course NowPreferred PartnersSecure Your Crypto w/ a Hardware Wallet – Get a Ledger TodayGet the #1 Crypto Tax Software - Get Started with CoinLedgerThe Best Charting Software on the Internet - Join Trading ViewJoin us on Discord | Follow us on TwitterAdvertise with Web3 Academy Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.

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