Forex in this article
?? EIP-1559 has been integrated with London Hard Fork
?? The new fee structure should have a deflationary effect
?? ETH rate has increased since then
On August 5th, the upgrade for the Ethereum blockchain went live with the London Hard Fork. In order to make Ethereum more deflationary in the long term, a new fee structure was introduced so that ETH is burned with every transaction. This should have a positive long-term effect on the ETH price. Further steps are to come with the planned switch to proof-of-stake with ETH 2.0.
Since then, the Ethereum price has increased by almost ten percent. The second largest cryptocurrency by market capitalization is currently trading at $ 2,981.09 (as of August 19, 2021). While the price was previously around the $ 2,500 mark at times, it has already made the jump over the $ 3,300 mark several times after the update.
This is what analysts at Ethereum Hard Fork think
As reported by Yahoo Finance, Martin Gaspar, research analyst at CrossTower, believes that the apparent success of the upgrade is factored in. In addition, the notion that Ethereum would become a deflationary cryptocurrency in the future is now palpable and the impact on Ethereum’s valuation could be profound, according to Gaspar.
Nansen’s Co-Founder and CEO Alex Svanevik believes it will be a while before the effects of the upgrade really become apparent. A metric that looks at the percentage of EIP 1559 transactions is currently very low. “When wallets, bots, etc. begin to use the EIP 1559 functions, we will know more about how this upgrade will affect Ethereum in the long term,” said Yahoo Finance, quoting the head of the analysis platform for blockchain, which claims to be on-chain -Data combined with a huge and ever-growing database with millions of wallet labels.
Denis Vinokurov, Head of Research at Synergia Capital, sees the response to the upgrade as more or less as expected. It rarely happens that the popular cryptocurrency feels a direct boost after such an upgrade, “although there is a tendency over time.” – Trade Bitcoin with Plus 500 – that’s how it works. 72% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford the high risk of losing your money. – Unlike a meeting of the US Federal Reserve, “where slight nuances in relation to the language used can have a stronger influence on the reaction of different asset classes”, events such as the Ethereum hard fork are in the thanks to transparent discussions in various forums and conferences Generally well documented in advance.
According to Yahoo Finance, the managing director of the Exchange Traded Products division at 21Shares AG, Laurent Kssis, fears a short-term correction if the network stabilizes before the upward trend is then resumed. “With [nicht fungiblen Token] in full swing we see a consolidation as the demand in the segment [dezentrale Finanzen] remains strong, “says Yahoo Finance Kssis.
Alexandre Lores, an analyst at Quantum Economics, believes that increasing ether scarcity will give supply / demand factors longer-term value. “In the short term, this is another reason to be optimistic,” Yahoo Finance quoted the analyst as saying. The good development of Bitcoin, which is one of the main influencing factors for Ethereum, should also drive Ethereum according to Lores.
“This is the largest upgrade to Ethereum in years. Part of me thinks Ethereum maximalists didn’t expect it to be implemented. Of course, the hype plays a role,” said Tom Salter, digital asset analyst at ByteTree. “Remember that surge [ETH] to a relative 30-day high against BTC. “Going forward, Salter hopes that some debates in the Ethereum community, such as EIP 1559, will settle.
Rick Bensignor, president of Bensignor Investment Strategies, attributes the rise in the price of ether after the London upgrade to a combination of the theoretical upward movement stemming from the “hard fork,” reports Yahoo Finance. The uptrend, in his opinion, was due to the fact that crypto traders tended to trade the news of the day and “it’s not a sufficiently developed market to really know what the long-term fundamentals really are,” Bensignor said.
Finanzen.net editorial team
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