Ethereum is catching fire, as fear and panic take hold of the markets.

According to the post shared by Hal Press Fund, Ethereum’s burn rate is on its way back up after the emergence of FUD in the market following the rapid turnaround of most crypto-currencies. However, while this is a negative factor for the market, some level of panic among investors is benefiting Ethereum.

In the meantime ETH burn going absolutely bananas. Now all FUD just contributes to burning more ETH. What a beautiful sight. pic.twitter.com/CKK4WBA8qB

– Hal Press (@NorthRockLP) January 18, 2023

As Ultrasound.Money suggests, Ethereum’s supply shift has reached 60%, meaning that most of the coins issued are being destroyed and the network remains deflationary. Compared to December, this is a nearly 60% increase in MoM of total coins burned.

With the gradual increase in the number of burned tokens, selling pressure on Ethereum should decrease, creating more opportunities for investors in the market. However, it is important to note that the overall amount of Ethereum burned is not a panacea for the price of ETH.

The high burn rate is more an effect than a cause of the network’s strong performance. After the 2021 rally ended, the value of Ethereum kept falling, and even a massive amount of burn did not help ETH as an asset in the market.

Currently Ethereum is trading at $1,527, with a 1% price increase in the last 24 hours after breaking the local resistance level reflected by the 200-day moving average.