Here are the Signs of the Next ETH Bull Run

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Arthur Hayes, co-founder of crypto derivatives exchange BitMEX, said he only looked at one Ethereum (ETH) chart that could be an important sign for the next ETH bull run.

To his 298,000 followers on Twitter, Hayes revealed net issuance or net issuance of ETH is the only graph that is important to observe after the blockchain smart contract transitions from proof of work (PoW) to proof of stake (PoS) via merge.

"The decline in ETH issuance every day will be a sign of the next bull run," said Hayes, quoted by the Daily Hodl.

Significant Sign of Bull Run ETH

ETH issuance is the process of creating new, previously non-existent ETH coins in return for stakeholders keeping the Ethereum network running and secure.

Through the official website, the Ethereum community described the dramatic change in ETH issuance changes after the merger.

The mining reward is 13 thousand ETH per day, and the staking reward is 1,600 ETH per day before the merge. After the merge, only 1,600 ETH per day remained distributed, so new ETH issuance fell by 90 percent.

Assuming the price of Ethereum transaction fee gas is at 16 gwei, at least 1,600 ETH is burned every day. The destruction process causes the issuance of ETH to be zero or negative after the merge.

Hayes predicts ETH will trade at US$3,000 by the end of the year. The reason is, he believes that the ETH supply circulating after the merge will not be enough to meet demand.

"If there is a certain amount of demand and supply can't meet it, then the price will go up regardless of the cost to buy it," concluded Hayes.

Ali Yaha, partner at venture capital firm a16z, said the merge was a great achievement for ETH's bull run. Because, this update involves swapping the most important Ethereum component, namely the consensus algorithm, without stopping the network.

He added, the advantage of transitioning to PoS is a hundred times energy efficiency compared to before. Participation in the PoS consensus algorithm does not require as high a power as PoW.

In addition, PoS has direct access to stakes of each validator that is deposited to secure the network. This means PoS incentives can become more granular and drive higher security.

Today, ETH is trading at $1,344, down 7.3 percent in the last 24 hours on a trading volume of $14 billion. ETH hit an all-time high of $4,878 in November 2021.

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