Here’s what traders expect now that Ethereum price is over $3,000

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Cointelegraph 07 August, 2021 - 02:41pm 129 views

Is ethereum burning coins?

Since the activation of Ethereum Improvement Proposal (EIP) 1559, the network has removed from circulation, or “burned,” over 5,000 ETH, worth roughly $14 million. This represents 36% of total new coin issuance over the same time period. Yahoo FinanceEthereum Burns 36% of New Coin Issuance Over 2 Days

What does ethereum hard Fork mean?

A hard fork essentially means an unchangeable permanent modification on the blockchain. The update adds London to its name because the crypto community usually names these upgrades after the names of cities which have hosted its Devcon international developer's conferences. India TodayEthereum gets London Hard Fork update and here is what the investors should know about it

ETH traders hint that the bull market could be back after Ethereum price hit $3,000 for the first time in 79 days.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Ether (ETH)  did in fact experience a “sell the news” sell-off shortly after London went live but dip buyers quickly rushed in and pushed its price back above $2,800, its highest level since June 7. This bullish momentum extended further after Bitcoin price surged above $44,000 and at the time of writing Ether trades at $3,050.

Now that the network is operating smoothly following its biggest update of the year, here’s a look at what traders and analysts expect next from the top altcoin.

Insight into Ether's price action was provided by pseudonymous Twitter analyst Rekt Capital, who highlighted the altcoin's weekly resistance level as an important hurdle to jump in order to continue the current uptrend.

According to the chart provided, Ether needs to close above $2,714 to confirm a trend continuation.

Rekt Capital said:

According to SpinTrades, a pseudonymous Twitter analyst, traders should keep an eye out for a possible move to $2,600, while a break and close above $3,000 could lead to a rally to $3,300.

Related: London is live and Ethereum bulls control Friday’s $357M ETH options expiry

One of the more interesting upgrades included in the London hard fork was a new Ether burning mechanism which burns a portion of the transaction fees and removes it from the circulating supply of coins.

As noted in the following tweet from Alex Krüger, more than 2,160 Ether ($6 million) were burned within the first seven hours and investors appear to be assuming that the price will rise if this trend continues. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read full article at Cointelegraph

Ethereum price set to climb higher after the London hard fork: Expert analysis

finder.com.au 07 August, 2021 - 07:00pm

The options for earning passive income from staking ETH continue to expand. Here are a few.

London is the latest in a series of upgrades that are part of Ethereum’s measured transition from its original proof-of-work consensus model to a proof-of-stake model dubbed Ethereum 2.0.

On Eth2, tokenholders who hold at least 32 Ether (ETH) can operate a validator node and verify transactions on the network. With the current price of Ether trading near $2,700, that puts the entry cost of running an Eth2 validator node at $86,400 — a price too steep for most participants in the market.

To help combat this issue, several options — including staking pools and centralized exchange staking — have emerged to offer all Ether tokenholders the opportunity to earn a yield on their tokens.

Here’s a review of some of the top options currently available to Ether holders.

Another option available to Ether holders who wish to stake their tokens while also being able to access their equity is Lido, a liquid staking solution for Ethereum.

Liquid staking protocols allow users to earn staking rewards without locking assets or maintaining staking infrastructure.

Through the Lido platform, users can stake their Ether with no minimum deposit required, with a current APR of 5.4% after the staking rewards fee is deducted. In return for staked Ether, users receive stETH, which can be freely moved and traded at will.

According to data from DeFi Llama, Lido is currently the top-ranked Ethereum staking pool and the eleventh-largest decentralized finance (DeFi) protocol by total value locked, with $3.26 billion in value currently locked in the Lido protocol.

The liquid staking capabilities of Lido are currently in the process of expanding, thanks to an initiative in the Anchor protocol community to list bETH — a wrapped form of stETH on the Terra blockchain — as a form of collateral on the Anchor platform, which will allow Anchor users to borrow TerraUSD (UST) against their staked Ether collateral as well as earn liquidity mining rewards.

StakeWise is an Eth2 staking service whose goal is to help users achieve the highest yield possible on their holdings through the combination of staking, yield farming, low fees and a unique tokenomic structure that enables compound staking.

Interested parties can deposit Ether into the StakeWise smart contract and, in return, receive sETH2, which is “staking ETH.” Rewards for the staked assets are paid out in rETH2, which is “reward ETH,” and both sETH2 and rETH2 can be exchanged at a one-to-one ratio for Ether.

These assets can also be transferred to any Ethereum wallet or exchanged for other tokens, allowing tokenholders to access the equity held in their staked Ether while also being able to earn staking rewards.

The StakeWise protocol enables anyone holding at least 0.001 ETH to participate in staking via StakeWise Pool, while larger tokenholders with at least 32 ETH can use StakeWise Solo, a noncustodial staking service where users provide the public part of their withdrawal key and blocks of 32 ETH for StakeWise to create and manage validators on their behalf.

The current APR offered for staking on the StakeWise protocol is 5.64%. There is a 10% commission for rewards generated through StakeWise Pool, while StakeWise Solo users are charged a fee of 10 Dai per validator per month.

For users who are not quite up to speed on the ins and outs of decentralized finance — or simply prefer the more traditional custodial route — some of the top centralized exchanges in the ecosystem have started offering Eth2 staking services to traders on their platforms.

The leading options currently available to users in the United States are Coinbase and Kraken, the number-two and number-four globally ranked cryptocurrency exchanges, respectively, according to 24-hour trading volume.

The main drawback for users who wish to stake their Ether using one of these options is that their stakes will be illiquid, meaning that they will be unable to trade their tokens or access the value contained within until the Eth2 network is fully launched.

Kraken currently offers an annual staking reward of 5% to 7%, depending on the rules of the Ethereum protocol, and charges a 15% administrative fee on all rewards received.

The current APR offered by Coinbase is 5%, after a 25% commission is deducted. While neither Kraken nor Coinbase offers any kind of insurance on staked Ether, Coinbase has promised to cover any losses that occur should its validator responsibilities not be met.

Overall, the top staking options available to Ether holders offer an APR range of 5% to 7% and charge a minimum commission fee of between 10% and 25%. When compared with the sub-1% savings rate offered by most banks on a rapidly inflating dollar supply that loses more value by the day, Ether staking could soon become the preferred savings account and a source of passive income for cryptocurrency proponents.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ethereum Estimated To Become Deflationary: Here's When And How Much

Yahoo Finance 07 August, 2021 - 09:38am

What Happened: According to network data, over 4,418 ETH (equivalent to over $12.1 million) were burned in under 22 hours after the network implemented Ethereum Improvement Proposal (EIP) 1559 as part of the London hard fork.

With EIP-1559, users start paying a variable "base fee" for transactions that — instead of being paid to miners — is burned (read "destroyed forever") in addition to an optional miner tip. But this is far from the only change implemented by this EIP.

Blockchains process transactions in so-called "blocks" containing many transactions as opposed to just processing single transactions one at a time. The speed at which transactions can be processed is limited by the block size limit which indicates how many transactions fit in a block and the block time, which is the speed at which new blocks can be created and added to the blockchain. As miners create new blocks (on average one every 10 seconds), they are rewarded with one newly issued Ether which is where Ethereum's current inflation rate of about 4% comes from.

EIP-1559 also allows for blocks to vary in size up to double the size that they were before, reducing network strain and nearly doubling the network's throughput in times of need which is in turn expected to result in lower fees when the network sees more use than usual. This, in turn, could result in more Ethereum applications becoming practical and causing more transactions to be processed each day in the long run.

What It Means: The cost of Ethereum fees is calculated by multiplying gas price (measured in Gwei, which is equivalent to 0.000000001 ETH) by the "gas" used in a given transaction. To put it simply, gas depends on how much network resources are employed by the transaction. This in turn means that complex transactions involving smart contracts or storing more data on the blockchain will result in a higher gas price than simple transactions moving Ether from one address to another.

Previously the gas price was determined by — usually automated — guesswork based on the network's strain but now is instead determined by the blockchain itself as the "base gas price" meaning that transactions are less likely to get stuck and everyone needs to pay the same amount, unless they want to pay a miner tip for extra-fast transaction processing.

In the future, Ethereum developers plan to do away with mining altogether and transition the blockchain to the much more energy-efficient proof-of-stake (PoS) algorithm that consumes a fraction of the electricity of mining and does not require specialized hardware that has to be replaced often.

This process is also much cheaper and will allow for the issuance of new coins to be significantly reduced while still subsidizing network maintenance, which is why many hope for Ethereum to become deflationary after it transitions to PoS. This change is expected to take place sometime in Q1 2023, but no official date has been set.

After the transition to PoS, miners would be replaced by stakers who placed their Ether "at stake" and verify transactions knowing that they risk losing their assets if they try to confirm transactions that do not conform to the network's rules. The rate of issuance would largely depend on how much Ether there is at stake: the more coins at stake, the higher the issuance rate.

Now that we all understand the basics of how Ethereum's fees, burning and issuance work we can start looking at estimates of whether and how much we can expect Ether to become deflationary.

Why It's Important: According to Ethereum burning and inflation tracking service Ultrasound.Money — with 10 million ETH, an average base gas price of 20 Gwei and PoS being implemented on 31 March, 2022 — we should expect Ether to become deflationary at the very moment when it moves away from mining. On the day of the transition, there would be 120 million ETH in circulation, which would decrease by about 400,000 in the first year: a deflation rate of 0.33%. The daily burn rate would be 2,000 ETH.

That being said, July's mean gas price was nearly 32.7 Gwei and while we should expect a slight gas price decrease after EIP-1559 we should be surprised to see it tank this much. After adjusting the average gas price to 30 Gwei we get an estimated burn rate of 3,000 ETH per day, a transition day supply of 119.8 million tanking by 600,000 million in the first year: a deflation rate of 0.5%, nothing to scoff at. This is still a significantly lower burn rate than the 4,550 ETH burn over the first 23 hours after EIP-1559 implementation.

Admittedly, we did not try to guess the right number of Ether staked after PoS implementation. Still, this has much less of an impact than base gas price variation, and even triplicating it would not result in the coin avoiding becoming deflationary.

Ethereum (CRYPTO: ETH) saw another major price uptick reaching levels not seen since the month of its all-time high following a positive change in its fundamentals which attracted investments. What Happened: According to CoinMarketCap data, Ether saw its price climb nearly 14.2% higher from its 24-hour low of $2,769 to a high of $3,162, before settling at its current price of $3,109 as of press time. The price uptick is accompanied by healthily growing trading volumes, which followed the impleme

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