After the Ethereum (ETH) price moved sideways in the last week and remained under pressure, it has shown a strong recovery from this week onwards. At the time of going to press, ETH price is up 6.5% and at the time of writing this story is hovering above $ 2100.
Some of the on-chain indicators shown by CoinGape were already pointing to this price recovery. Another important reason, however, is that the world’s second largest cryptocurrency has reached another milestone. For the first time in history, address activity on the Ethereum blockchain network has surpassed that of Bitcoin.
This is happening amid the steadily declining address activity on the Bitcoin blockchain, while that on the Ethereum network is on an upward trend, as Santiment reports.
Ethereum London Hard Fork is getting closer
Last week, on June 24th, the highly anticipated London Hard For was launched on the Ropsten Testnet, as developers look forward to the mainnet launch in July next month.
The hard form brings the EIP-1559 modification, which changes the calculation mechanism for the Ethereum transaction fee. In addition to changing the fee structure, the EIP-1559 aims to implement the mechanism to burn off the “base fee” that will make the Ethereum economy deflationary over time. So far, over 88,000 ETH coins worth around 177 million US dollars have been burned in the Ethereum Ropsten test network.
Almost 90,000 ETH have already burned on Ropsten Testnet. pic.twitter.com/wDlX7vswup
– Documentation from Ethereum 🦇🔊 (@DocumentEther) June 28, 2021
According to blockchain firm ConsenSys, the implementation of EIP 1559 will reduce annual supply at a rate of -1.4%. ConsenSys states in its most recent blog post:
“As a side-effect of a more predictable base charge, EIP-1559 can lead to some reduction in gas prices if we assume that the predictability of charges means users are less likely to overpay for gas.”
Private and institutional demand for Ethereum has skyrocketed recently. CNBC’s Mad Money show host Jim Cramer said he is optimistic about Ethereum as a lot of money is pouring into it.
“Bullish. Must be. There’s too much money coming in,” @JimCramer says. “I went back to #ethereum because #bitcoin was $ 30,000. I like Ethereum because people actually use it a lot more to be able to buy things.” pic.twitter.com/IIAeUL4BNL
– Squawk Box (@SquawkCNBC) June 28, 2021
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About the author
Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in business and finance draws his attention to the emerging blockchain technology and cryptocurrency markets. He is constantly in a learning process and motivates himself by sharing the knowledge he has acquired. In his spare time he reads crime novels and sometimes explores his cooking skills.