After the Ethereum London Hard Fork started a few days ago, the ETH price is increasing continuously. The Ethereum price even landed near the 3,200 US dollar mark twice.
The crypto trader “The Crypto Dog” explains on Twitter:
“New all-time highs at $ ETH are not that far away.”
The Ethereum price after the London Hard Fork
On August 5, 2021, Ethereum launched the London Hard Fork. Previously, the ETH price was just under $ 2,400. As a result of the upgrade, the Ethereum price rose twice briefly to just under 3,200 US dollars.
Due to the renewed fee structure of the Ethereum network, ETH will now be burned with every transaction. So far, the network has burned over 16,640 ETH since the London Hard Fork. This is a measure to make Ethereum more deflationary in the long term. Further steps towards a deflationary character come with the planned switch to proof-of-stake with ETH 2.0.
Crypto trader Lark Davis stated on Twitter:
“EIP 1559 went live today. More than 3,000 ETH were burned. We are on track, in the first 24 hours for about [6.000] until  Burn ETH. 12,000 ETH will be dismantled today. This corresponds to a reduction in the delivery flow of around 50% and we are still waiting for the large wallets to be updated. “
He also explains that if Ethereum switches to proof-of-stake, it will experience a 90% reduction in daily emissions. The block rewards should then be 1,280 ETH instead of 12,800 ETH per day.
“Which basically lowers the annual inflation rate from around 4.3% to 0.43%. That is a reduction of 90%. “
Raoul Pal: Ethereum is the better setup
Analyst and former Goldman Sachs manager Raoul Pal explains in an interview that Ethereum delivers one of the best trading setups. For Pal, Ethereum will develop into the “biggest trade” based on the high level of usage.
“I published Global Macro Investor last Monday and there was an article buried there that was about six pages long and was titled ‘The Greatest Trade’ and it’s just Ethereum. I think, [es gibt] a better setup in Ethereum than March 2020 was for Bitcoin. “
Raoul Pal also says that the limited supply of ETH contributes to this scenario. According to Pal, around 13 percent of the coins are available, the rest of the supply is held, stacked or locked.
“The available ETHs are decreasing every day. And now we’ve just got the 1559 token out of the way. Most people will start holding on to them [ETH] to stake. And it’s not a [ETH] available, demand is increasing exponentially. Exponential demand meets fixed supply and exponential price increases. One of the best setups I’ve ever seen. “
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