Raoul Pal claims there is currently a shortage of altcoin supply
Raoul Pal, a former employee of the investment bank Goldman Sachs and CEO of Real Vision, said he prefers Ethereum over Bitcoin, as there is currently a shortage of supply on the altcoin network.
Pal recalled that in August, a mechanism for burning digital coins was launched on the Ethereum network. Considering this and the amount of funds blocked in the ETH 2.0 protocol (8.4 million ETH – $ 36.6 billion at the current exchange rate as of November 2), no more than 11% of the altcoin offer remains in free circulation, the head of Real Vision says.
“11% Ethereum is all the available altcoin volume that you could buy if you entered the market, and this shortage of coins is happening before our very eyes,” said Pal.
Since the beginning of August, 728.8 thousand ETH worth about $ 3.1 billion have been destroyed on the Ethereum network, according to the ultrasound.money service. The average burning rate per minute at the moment is 5.6 ETH worth about $ 24.4 thousand.
On October 29, Ethereum updated its all-time high above $ 4.46 thousand. On November 2, altcoin is trading at $ 4.45 thousand, and its capitalization is $ 526 billion, according to CoinGecko. Over the month, the cryptocurrency has risen in price by 31%.