Crypto's New Digital Gold? Ether’s Daily Issuance Drops Below Bitcoin
  The latest moves in crypto markets, in context By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets August 27, 2021 Sponsored by  (Price data as of August 27 @ 11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole Ether's Daily Issuance Drops Below Bitcoin, IntoTheBlock Says Ether, the native token of Ethereum's blockchain, looks to have become more scarce than bitcoin since the activation of Ethereum Improvement Proposal (EIP) 1559.
Data tweeted by Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, shows ether's daily annualized net issuance fell to 1.11% earlier this week versus bitcoin's 1.75%.
Daily issuance refers to the number of coins mined. In the case of ether, the figure is adjusted for the amount of ether burned.  Bitcoin and ether issuances, annualized (Source: IntoTheBlock) EIP 1559, which went live on Aug. 5, burns a portion of fees paid to the miners, removing a notable chunk of coins from circulation. Since activation, the upgrade has eliminated over 100,000 ETH, representing 36% of the new coins issued over the same period, according to data source Etherchain.
The amount of ether burned is tied to network usage, which has surged in the past two weeks, thanks to the boom in the non-fungible tokens (NFT) space. According to Dune Analytics, NFT marketplace OpenSea is the biggest ether burner to date, having destroyed 15,697 ETH, an equivalent of $49 million at ether's current price of $3,120. Other top contributors are decentralized finance protocol Uniswap, stablecoin tether, and NFT game Axie Infinity.
Such has been the frenzy that ether became a deflationary asset, with the number of coins burnt being higher than issued, on several occasions in the past two weeks.  Bitcoin put-call skews (Source: Skew) If the trend continues, ether could attract store-of-value demand, which until now has been concentrated mainly toward bitcoin. The pace of bitcoin's supply expansion is reduced by 50% every four years by a programmed code called mining reward halving.
"Ether's decreasing issuance raises questions about how it is valued," Outumuro tweeted. "Previously closer to digital oil, ETH's value moved in tandem with its usage; now that its issuance is probably lower (and potentially deflationary), it is likely to develop a monetary premium like BTC."
Ether is currently priced at $3,110, and bitcoin is changing hands near $47,200, according to CoinDesk 20 data. The ether-bitcoin (ETH/BTC) exchange rate is 0.065 on Binance, having rallied from 0.057 to 0.073 in the days leading up to the EIP 1559 release.
Technician's Take by Damanick Dantes, CMT  Bitcoin Holds Short-Term Support; Upside Limited to $50K Bitcoin (BTC) is holding initial support around $47,000 and is roughly flat over the past 24 hours. The cryptocurrency appears to be oversold on intraday charts, although slowing momentum suggests buyers are still exhausted from the $50,000 resistance level.
So far, price is still above the 200-day moving average around $46,000. Lower support is seen at the upward sloping 50-day moving average between the $40,000-$42,000 breakout zone.  Bitcoin four-hour price chart with RSI. (Source: TradingView)
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