What happens if ETH stops being deflationary and XRP becomes the global liquidity benchmark?

💡 DMK Insight

ETH’s deflationary narrative might be losing steam, and here’s why that matters: With ETH currently at $3,442.78, traders should keep an eye on its supply dynamics. If the deflationary pressure eases, we could see a shift in sentiment that may lead to increased selling pressure. On the flip side, XRP at $2.31 is gaining traction as a potential global bridge in digital finance, thanks to its speed and compliance features. This could attract institutional interest, especially if ETH’s appeal wanes. Traders should monitor the ETH supply metrics closely, particularly the burn rate and any changes in staking rewards, as these could signal a shift in the asset’s attractiveness. For XRP, watch for any regulatory updates or partnerships that could enhance its liquidity network. The next few weeks could be pivotal for both assets, especially if ETH breaks below key support levels that could trigger further downside. Keep an eye on $3,300 for ETH and $2.00 for XRP as critical levels to watch.