Ethereum ends the week with an impressive run above $3,000, its highest price mark since May. This comes on the heels of the successful completion of the London Hard fork upgrade, which drew comments from Ethereum’s co-founder, Vitalik Buterin. According to the Ethereum billionaire, the hitch-free upgrade boosts his confidence about the network being able to undergo significant changes, and ultimately, being capable of completing the transition to ETH 2.0.
Ethereum Attains Three-month High, Since May Crash
Ethereum’s price rally on Saturday is not unconnected to the bullish effect of the upgrade. The rally to $3,200 marks the first time the largest altcoin by market cap is attaining that price since May. A general market downtrend in mid-May sent prices crashing, with Ethereum losing more than 50% of its ATH. At present, Ethereum is only $1,365 short of its $4,365 all-time high.
Despite the debate surrounding the US Infrastructure bill, the market has managed to stay afloat. The US Congress is still divided over amendments being suggested on the bill. While some senators are against the amendment which will exclude some crypto businesses from tax reporting rules, others are utterly against it. Market observers still look forward to the eventual outcome of the back and forth between lawmakers.
Major Upgrades Take Place on Ethereum
Meanwhile, the London hard fork introduces scalability on the network in terms of gas fees and transaction throughput. More importantly, it paves the way of a deflationary mechanism on the network geared towards reducing the supply of Ether. This idea is conceptualized as the EIP-1559, which will also determine the way gas fees are charged in each transaction via a base fee structure. With this, even during congestion periods, users can enjoy low gas fees, as well as dynamic and variable transaction blocks that would expand to accommodate numerous transactions.
Since the Thursday upgrade, Ether burnt stands at 2.70 ETH every minute. Accordingly, the total amount of Ether destroyed via burning since two days ago is approximately 8,968 ETH, valued at $26 million, as per the price of ETH as of press time- $3,200. ETH has increased in the last 24 hours by 13.19%.
Alongside Bitcoin, Ethereum is enjoying adoption from big players in mainstream sectors. Leading asset manager, Grayscale keeps expanding on its Ethereum Trust. However, its Bitcoin Trust- which it is also looking to convert to an ETF- retains the upper hand. Experts at American bank Goldman Sachs have predicted an ‘Ethereum Flippening,’ whereby the largest altcoin will surpass the market capitalization of Bitcoin.
Ethereum will transition from a proof-of-work consensus to a proof-of-stake by 2022, when the mainnet will be merged to the beacon chain. After that, the shard chains will be introduced. For now, users can now enjoy low gas fees and faster transactions courtesy of EIP-1559.
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