EIP-1559, EIP-3198, EIP-3529, EIP-3541 and EIP-3554 – which are all part of the latest upgrade – have already gone live on the Ropsten testnet.
- Total Value Locked (TVL) across the DeFi landscape has increased over 14% in the past two weeks.
- Despite the current positive momentum, ETH still has a negative 30-day return of 15%
- 100,000 ETH tokens were recently tied to the ETH2.0 staking contract, suggesting increasing market support for the altcoin.
Things seem extremely positive for Ethereum, the world’s second largest cryptocurrency by total market capitalization, especially after the leading altcoin rose to a price of AU $ 3,200 less than 12 hours ago. As a result, the digital asset is currently showing weekly gains in excess of 15% and trading at AU $ 3,040.
It’s pretty clear to see that this latest wave of bullish support came in the wake of the Ethereum network kicking off its long-awaited London upgrade on the Ropsten testnet. The hard fork consists of a series of Ethereum Improvement Proposals (EIP) 1559 that aim to mitigate a wide range of the existing gas fee and altcoin congestion issues.
According to Ethereum’s planned roadmap, the upgrade will gradually be rolled out in other testnet environments – including Goerli, Rinkeby and Kovan – over the next few weeks after the Ropsten tests have been completed. If execution goes as planned, experts believe the transition from Etherum to the Proof-of-Stake (PoS) framework (which is slated to happen over the next year or so) will be a lot easier.
On this subject, James Beck, director of communications and content at ConsenSys, a company currently involved in building the burgeoning ecosystem of ETH, believes that by introducing the “basic fee burn” feature, Ethereum will face great deflationary pressures, potentially causing it converted into an attractive long-term store of value (a coat currently held by Bitcoin). Then he added:
“Theoretically, the more transactions take place, the stronger the deflationary pressure that the burning of the basic fee exerts on the entire Ethereum offering.”
How do I buy Ethereum
A dynamic seems to be building up behind the scenes
According to data from the analysis company CryptoQuant, a little more than 100,000 ETH tokens were staked and locked in the Eth2 deposit contract on the day the London upgrade went live on the Ropsten Testnet. At the time of going to press, the aforementioned crypto fetch is worth approximately AU $ 305 million.
That sudden surge in interest – especially considering the day of the move – seems to pretty much hint at the positivity surrounding the Ethereum network. In fact, if EIP-1559 and EIP-3554 can deliver on their long-standing promises (of lower network fees), the value of ETH could increase significantly in the coming days and weeks.
After A $ 300 million worth of Ethereum options expired last week, the general sentiment around ETH seems to have turned bullish. With this in mind, it should be noted that the decentralized finance (DeFi) market, which had come off late, has had a rift recently, with the total value (TVL) increasing from AU $ 64 billion to AU across the ecosystem $ 75 billion as of June 27th.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, delve deeper by learning more about Ethereum, and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a number of cryptocurrencies at the time of writing
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