A low-volume weekend in the crypto space has seen the value of virtual assets, especially altcoins, subdued. ETH is down by almost 53% from its mid-may peak price and trades at about $2,200. Some exchanges are not even recording any funding for Ethereum.
Hence, investors are maximizing this chance to buy the coins at low prices. The number of Ethereum holders has been rising for over a year now. The total number of Ethereum holders has now surpassed 163 million. Etherscan reports that there are at least 100,000 addresses added every day.
There are some days the number of addresses rose over 200K. Even early last month, there were days the number of addresses surged past 320K. Yet, Tesla CEO, Elon Musk, tagged the top two cryptocurrencies as ‘slow’ and ‘costly.’
Bogdanoff Twins Sells NFTs
In other news, Bogdanov twins have claimed that they had a part in bitcoin innovation and are currently selling their meme’s non-fungible token. NFT and Defi has been growing at a fast rate on the Ethereum blockchain. Ethereum advocates expect that the London Ethereum improvement proposal (EIP)-1559 hard fork upgrade will be completed and implemented early next month.
The next stage is for the second-largest crypto platform to switch to proof-of-stake (PoS) from proof-of-work (PoW). As of this writing, the amount of deposit contract staked in Ethereum is 6.25 million ETH.
JPMorgan analysts opine that staking helps crypto holders avoid losing the value of their asset when compared to holding it in other asset categories like the U.S. treasures and U.S. dollars. They also said that the crypto market might become more mainstream since stakers can convert their stakes into a positive real return.
The banking behemoth further added that “the yields induce people to invest considering the present zero-rate environment.”
The Hard Forks Continue
The London hard fork follows the previous ones, namely Instanbul and Berlin hard forks. Despite the successful launch on various testnets (including the most recent one on Ropsten), Ethereum’s London hard fork was postponed from this month to early next month.
While there would be several EIPs in the London hard fork, the most prominent ones are EIP 1559 and 3554. EIP-1559 proposes a change in the gas fee implementation structure. It suggests that the network should receive the gas fees instead of miners who receive them to complete transactions on the block.
This new gas fee structure will cause a reduction in the total ether supply, and there will be changes to each block’s base fee. EIP-3554 is an advancement on EIP-3238 which proposes an increase in mining difficulty such that miners would be forced to abandon Ethereum 1.0 and switch to Ethereum 2.0 completely.
While EIP-3238 proposes that this takes place next year, EIP-3554 proposes that this occurs towards the end of this year. Despite the seeming benefits of these proposals, some Ethereum holders aren’t happy with these proposals, especially the EIP-1559.
They argue that the proposal would create a deflationary effect on Ethereum and reduce miners’ profits. It is noteworthy that Ethereum mining profits have soared to new heights in the past year.
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