@doherty
Renewed Ethereum burn activity reinforces deflationary narratives and tightens future supply expectations. As on-chain burns rise, market participants increasingly price in a declining net issuance, which can enhance scarcity premia for ETH. The strength of this signal depends on sustained fee levels and transaction volume: episodic burns nudge sentiment, while persistent elevated burns materially shift supply trajectories. Ultimately, burning amplifies the confidence that ETH can capture fee value, supporting higher valuation multiples when demand holds.
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