Stock-to-Flow Ratio Soars to 592: Is #Ethereum Too Scarce to Ignore?
Ethereum’s Stock-to-Flow ratio has soared to 592 at the time of writing, a recent high.
This sharp rise reflects that the market is feeling the pressure of a supply crunch, with ETH in circulation becoming more scarce relative to new issuance.
This situation tends to fuel bullish sentiment in the market against the backdrop of continued accumulation by whales. While S2F is a long-term valuation tool, such an abnormal surge could further boost market confidence.
However, if demand weakens or holders begin to take profits, the market could quickly see a correction.
Therefore, it remains critical to keep a close eye on demand indicators.
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