Ethereum Price Surges As London Hard Fork Goes Live

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bitcoinist.com 06 August, 2021 - 12:30pm 77 views

What is ethereum London fork?

What is London Hard Fork? The London Hard Fork are a set of five Ethereum improvement proposals (EIPs). EIP-1559, included in the London Hard Fork, aims to change speed and incentivisation of Ethereum mining. There is no limit on Ethereum count as it is an inflationary cryptocurrency. Economic TimesWhat is Ethereum’s London Hard Fork update & how will it impact investors?

Ethereum EIP-1559 recently went live on August 5th. The long-awaited London Hard Fork arrived just on time at block height 12,965,000. EIP-1559 represents a big step in the move to ETH 2.0. Following the launch, the price of Ethereum has soared in response. Over the past 24 hours, the price of ETH has jumped over 6%. With the coin looking to continue this upward trajectory as more ETH are burned out of existence.

EIP-1559 was meant to change Ethereum’s fee structure. So far, the upgrade is working as intended. Transaction base fees are being burned as transactions are carried out on the network. Starting what might be the beginning stages of ETH becoming deflationary.

The price surge shows investors continued faith in the Ethereum project. Investors continue to hold on to their coins despite price dips in the market. While demand for ETH looks to be on the rise following the launch of EIP-1559.

Starting from the launch of EIP-1559 at 12:33 PM UTC, ETH fees have continued to be burnt. The burn rate continues to increase the more time passes. After about 12 hours following the launch, the burn rate was at 2 ETH per minute. Now the Ethereum network has seen ETH fees burned at a rate of 3 ETH per minute in the past 24 hours.

Over 4,000 ETH have been burned since the launch of EIP-1559. Amounting to over $11 million worth of coins taken out of circulation forever. The burn continues to be one of the most-watched events in the crypto market space currently. With a number of websites reportedly crashing following the high influx of people clicking in to watch the burn.

With less ETH being put into circulation, it increases the value of the coins already in the market. Which translates to price surges like the one currently being experienced in the price of Ethereum.

The price of Ethereum has surged up to break the $2,700 range following the launch. An impressive 6.6% price increase in the last 24 hours. ETH price had been trending up recently leading up to the launch. With a couple of run-ups spread over the past week-and-a-half in the market. Most of the significant price increases happening during the weekends.

The crypto market received the launch of the hard fork positively. Twitter trends around the world included Ethereum, hard fork, and EIP-1559. Investors and non-investors alike discussed what this fork would mean for the market. And more importantly, what it would mean for the future of ETH.

There is no doubt that the hard fork spells good news for the network. The hard fork launching without being pushed back again shows that the project is currently on track with the current timeline. And the network is one step closer to moving completely to ETH 2.0.

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© 2021 Bitcoinist. All Rights Reserved.

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Here's how much ETH has already been burned due to EIP-1559

The Block Crypto 06 August, 2021 - 03:30pm

But part of the new mechanism involves burning a portion of the transaction fees, removing them from the circulating supply of coins. And while new ether (ETH) is being issued every block, this reduction in supply is helping to counter that — effectively reducing the network’s rate of inflation. 

And so far, 213 ETH has already been burned, at a value of $559,000 — according to block explorer Etherchain's burn tracker.

While burning is a very dramatic term, it just means removing the coin from circulation.

Typically, this is very simple in technical terms. To burn a cryptocurrency, you send it to an address that nobody has control over. Unless someone happens to guess the private keys to that address (an exceedingly unlikely possibility) nobody will ever be able to spend the coins.

In this case, however, the tokens are actually destroyed by the protocol — which means they no longer exist on the network.

According to MyCrypto developer Luit Hollander, this happens by removing the ETH from the person making the transaction (and paying the base fee) but not giving it to the miner. This is unlike transaction fees that are paid directly to miners. As a result, nobody is able to spend it on the network from that moment on.

So far, the network has been burning ETH at quite a high rate. But it won’t necessarily continue like this.

As The Block explained, the upgrade enables the network to adapt to moments of higher demand. So when there are more transactions, there is a higher base fee (the part that gets burned) and more ETH gets burned. But once the network goes quiet, less ETH gets burned.

So right now, the network is processing all the transactions in the current backlog, a pre-blockchain limbo called the mempool. Once those transactions have been processed, then there will be lower demand and the base fee will likely drop.

“Don't expect the current burn rate to cont forever,” wrote pseudonymous security researcher Hasu. “Once the mempool has been cleared entirely (which should happen any moment now), blocks will become smaller and basefee will fall again.”

While EIP-1559 is not slated to make Ethereum deflationary — where the network would burn more supply than is being newly issued — there has already been a block where that was the case.

As pointed out by EthHub co-founder Eric Conner, Ethereum block 12,965,263 saw more ETH being burned than was issued. In this case, there was 2.078 ETH burned in base fees, while the amount of new ETH given to miners for mining blocks is only 2 ETH. Conner described this as, "The first deflationary block in history."

Ethereum Price Surges As London Hard Fork Goes Live | Bitcoinist.com

Yahoo Finance 06 August, 2021 - 12:00pm

Ethereum EIP-1559 recently went live on August 5th. The long-awaited London Hard Fork arrived just on time at block height 12,965,000. EIP-1559 represents a big step in the move to ETH 2.0. Following the launch, the price of Ethereum has soared in response. Over the past 24 hours, the price of ETH has jumped over 6%. With the coin looking to continue this upward trajectory as more ETH are burned out of existence.

EIP-1559 was meant to change Ethereum’s fee structure. So far, the upgrade is working as intended. Transaction base fees are being burned as transactions are carried out on the network. Starting what might be the beginning stages of ETH becoming deflationary.

The price surge shows investors continued faith in the Ethereum project. Investors continue to hold on to their coins despite price dips in the market. While demand for ETH looks to be on the rise following the launch of EIP-1559.

Starting from the launch of EIP-1559 at 12:33 PM UTC, ETH fees have continued to be burnt. The burn rate continues to increase the more time passes. After about 12 hours following the launch, the burn rate was at 2 ETH per minute. Now the Ethereum network has seen ETH fees burned at a rate of 3 ETH per minute in the past 24 hours.

Over 4,000 ETH have been burned since the launch of EIP-1559. Amounting to over $11 million worth of coins taken out of circulation forever. The burn continues to be one of the most-watched events in the crypto market space currently. With a number of websites reportedly crashing following the high influx of people clicking in to watch the burn.

With less ETH being put into circulation, it increases the value of the coins already in the market. Which translates to price surges like the one currently being experienced in the price of Ethereum.

The price of Ethereum has surged up to break the $2,700 range following the launch. An impressive 6.6% price increase in the last 24 hours. ETH price had been trending up recently leading up to the launch. With a couple of run-ups spread over the past week-and-a-half in the market. Most of the significant price increases happening during the weekends.

The crypto market received the launch of the hard fork positively. Twitter trends around the world included Ethereum, hard fork, and EIP-1559. Investors and non-investors alike discussed what this fork would mean for the market. And more importantly, what it would mean for the future of ETH.

There is no doubt that the hard fork spells good news for the network. The hard fork launching without being pushed back again shows that the project is currently on track with the current timeline. And the network is one step closer to moving completely to ETH 2.0.

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

© 2021 Bitcoinist. All Rights Reserved.

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