On Wednesday morning, the Ether currency recorded a 1 percent loss. At the time of writing, this was again 1 percent in the green. In the run-up to a technical adjustment of the underlying Ethereum blockchain technology, the price therefore appears to be stabilizing. The upgrade should forever change the way transactions are processed.
Why is this important?
The “Ethereum Improvement Proposal (EIP) 1559” upgrade, also known as the “London Upgrade”, will change the way transactions are processed and provide clearer pricing for these transactions. It will also curtail the supply of Ether tokens and likely cause its price to rise sharply. Technically, the upgrade will happen when the 12,965,000th block on the blockchain has been verified, Reuters reports. Tradingview is well known in crypto.
The Ethereum network supports a range of projects in the crypto world. These include non-fungible tokens (NFTs) – crypto-assets that represent an intangible digital asset, such as an image, video, or in-game item – and many decentralized financial applications (or: DeFi) running on the system.
Ether’s price has skyrocketed in the run-up to the upgrade, rising 40 percent over the past 15 days from a recent low. The token has more than tripled in value this year, outperforming Bitcoin, the world’s largest cryptocurrency by market value. Nevertheless, both have fallen sharply in value from the May boom. At the time of writing, the price of Ether fluctuates around USD 2,580.
Dan Morehead, CEO of crypto investment firm Pantera, told Reuters that the changes will make Ether more of a fixed asset. It would become more attractive to hold it as a store of value. Pantera manages $2.8 billion in blockchain-related assets and has invested in several crypto exchanges, including Bitstamp, Coinbase, and regional exchanges such as Mexico-based Bitso. Crypto exchanges Binance and OKEX said earlier this week that they expected the upgrade to take place on August 5, at 1:55 PM GMT. Enjin ENJ is well known in crypto.