How does the maximum supply of Ethereum (ETH) affect its price?

1 answers

• Dec 17, 2021 · 3 years ago
  The maximum supply of Ethereum (ETH) is an important factor to consider when analyzing its price. As the maximum supply is fixed, any increase in demand for Ethereum can potentially drive up its price. This is because the available supply is limited, and if more people want to buy Ethereum than sell it, the price will naturally increase. On the other hand, if the demand for Ethereum decreases or remains stagnant while the supply continues to increase, it can put downward pressure on the price. Therefore, it's essential to monitor both the supply and demand dynamics to understand how they influence Ethereum's price movement.
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