The ETH price continues to climb after the hard fork upgrade in London and has reached a level that it has not maintained for almost three months: ETH was able to pass the $ 3,000 mark today and is thus for the first time since the free Fall of the market so high again in May. The reason for the increase could be Ethereum’s recent London hard fork upgrade. However, the broader crypto market is also up.
Crypto markets are seeing green across the board
Ethereum’s price continues to climb following the recent launch of a major network upgrade, and today it surpassed the $ 3,000 mark for the first time since the market free fall in mid-May. According to data from CoinMarketCap, the ETH price is currently (at the time this article was written) at $ 3,139. Bitcoin is also experiencing massive growth and was even able to rise above 45,000 dollars for a short time. BTC is currently trading just below $ 44,920.
Although Ethereum is still far from its all-time high of almost $ 4,357, which CoinGecko said it hit on May 12, ETH hasn’t been that high in nearly three months. It has been below $ 3,000 since May 19, when the entire cryptocurrency market got into a downward spiral after months of growth.
Tesla’s decision to stop accepting Bitcoin and uncertainty over China’s crypto crackdown are cited as the main reasons for the decline. Both Bitcoin and Ethereum have lost more than 50% of their value from their all-time highs in April or May to recent lows. Almost the entire cryptocurrency market followed suit into a summer lull when profits from the beginning of the year were largely wiped out.
Ethereum in particular has dropped below $ 2,000 several times recently, most recently on July 22nd. Since then, however, the second largest cryptocurrency by market capitalization has grown steadily, gaining more than 50% in value in just a few weeks as the price passed the $ 3,000 mark today.
Profits probably attributed to the London Hard Fork
Although the overall market has been increasing lately, the increase in Ethereum is largely due to the launch of the long-awaited London Hard Fork. This is a network update that implements several suggestions for improvement from the community.
The London Hard Fork is changing the way the network charges fees, potentially saving users valuable ETH as they conduct transactions. Crucially, these fees are then burned – or withdrawn from circulation – instead of being given to the network’s miners, adding a deflationary element to Ethereum that gradually diminishes the supply of ETH.
Since launch on Thursday, August 5, Ethereum has been burning more than 12,000 ETH per minute, according to Etherchain.org, and has so far removed more than 8,600 ETH from the network in just two days. That’s a value of $ 25.8 million.
After the start of the London Hard Fork, the ETH price rose 7.85% – from a price of $ 2,583 on Thursday morning to today’s milestone of over $ 3,000.
Last updated on August 8, 2021
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