The Ethereum network was updated this Wednesday. A new fee mechanism ensures that from now on, Ether tokens are continuously destroyed when transactions have taken place. This gave the ETH course a noticeable boost.
Finally, the Ethereum blockchain has been updated with the long awaited Ethereum Improvement Protocol (EIP) 1559. Above all, the update brings about a change in the way in which the transaction fees are calculated.
So far, users have had no way of estimating the fee required in each case before a transaction. This was always accompanied by a certain amount of uncertainty about the timing and costs of a transaction. Thanks to the update, however, Ethereum now has a fee structure that is visible to everyone.
Through this “destruction”, the total amount of all available ether tokens is continuously reduced. This artificial shortage should in turn have a positive effect on the ETH price. This creates a greater attraction for investors to invest in Ethereum.
Ethereum price continues to rise
The ETH price has been on an upward trend since June 20. After the latest update, the course has again received new momentum.
After EIP 1559 was uploaded to the Ethereum blockchain, the price has risen by around 14.5 percent to this day, Friday. This morning there was some slight profit-taking afterwards. ETH is currently trading at $ 2,727.
Strengthened by the deflationary pressure due to the continuous burning of ETH tokens, the price could continue its positive development in the coming weeks.
Open a free crypto broker account? Trade real cryptocurrencies quickly and securely with eToro *.