As the Ethereum testnets Ropsten, Goerli, and Rinkeby have successively upgraded the London hard fork, the time for the London upgrade of the Ethereum mainnet is also on the agenda.
Earlier, Ethereum developer Tim Beiko proposed that the London hard fork be activated on the main network at block height 12965000, which is expected to be from 13:00 to 17:00 UTC on August 4, 2021 (21:08, August 4, Beijing time) 00 to 1:00 on August 5). At present, the proposal has been merged, and it is expected that the client will be released this weekend or early next week, and an appropriate announcement will be issued early or mid next week.
After the London hard fork upgrade of the Ethereum mainnet is completed, new protocols such as EIP-1559 will be re-implemented. So can the London hard fork upgrade lead ETH to regain the glory of the past few months?
The charm of EIP-1559
As we all know, EIP-1559 will enable Ethereum to automatically calculate prices based on block space requirements, instead of determining transaction fees through a process similar to blind auctions. All users must pay the basic price in order to process their transactions, and the basic transaction fee (Base Fee) will be destroyed instead of directly handed to the miners. In view of this, after the landing of EIP-1559, Ethereum’s fee market will usher in a major change.
The annual inflation rate of Ethereum is 4%, and each block will mint 2 ETH as a fixed block reward. In EIP-1559, the ETH in the base fee will be burned , which will exert a certain deflationary pressure on the price of ETH.
According to watchtheburn data, the Ropsten testnet has activated the London upgrade since block height 10,499,401, and 89,148.23 ETH has been burned up to block 10,601,074, which is approximately $186,943,840.95 at the current price. That is to say, 2*101,674=203,346 ETHs were generated in 101673 blocks, and 89,148.23 ETHs were burned at the same time. From this point of view, EIP-1559 does reduce the inflation rate of ETH, and this may cause the price of ETH to rise.
However, it should be noted that there is a certain gap between the data in the test network and the actual data of the main network. The actual situation needs to be determined after the main network is upgraded.
Catch up with Bitcoin
With the continuous upgrade and optimization of Ethereum, the idea of ”Ethereum may surpass Bitcoin” began to be continuously raised and emphasized, which aroused investors’ thinking.
Is it really possible for Ethereum to surpass Bitcoin? When can I catch up with Bitcoin?
Goldman Sachs stated in a report to customers on Tuesday that Ethereum is the blockchain with the highest “real use potential”, indicating that ETH may become the dominant store of digital value . Therefore, Goldman Sachs predicts that the total market value of ETH may exceed that of Bitcoin in the next few years. Analysts pointed out that Bitcoin’s first-mover advantage gives it a stronger brand effect, but they believe that Bitcoin lacks some of the use cases of Ethereum and its transaction speed is slower. Due to concerns about hard currency and network security, Bitcoin has not yet provided the same level of functionality as Ethereum. As a “younger” network, Ethereum can also grow at a faster rate than Bitcoin. Bitcoin has grown by 261% in the past year, while ETH has grown by 856% in the same period.
Alex Mashinsky, CEO and co-founder of Celsius, a crypto lending platform, stated on July 6 that the market dominance of Bitcoin, the largest cryptocurrency by market capitalization, has begun to lose to Ethereum. Ethereum “flips”, or replaces Bitcoin. The hypothetical scenario of the world’s most valuable cryptocurrency has now happened. He said that we manage approximately $17 billion in deposits and customer tokens, and the number one cryptocurrency in U.S. dollars is Ethereum. Mashinsky predicts that by 2022 or 2023, the market value of Ethereum will completely surpass Bitcoin.
The crypto venture capital firm Dragonfly Capital issued a report on July 3 that, in general, Ethereum is unlikely to become a popular currency, but in the long run, Ethereum can compete with Bitcoin in terms of scarcity, durability, and unforgeability. . In addition, the report stated that if Ethereum and DeFi continue to grow, ETH may occupy 10% of the BTC market. The author of the report stated that if the potential market value of BTC is approximately US$4.7 trillion to US$14.6 trillion, then the potential market value of ETH may be US$0.5 trillion to US$1.5 trillion.
According to the Flippening Index (the possibility of Ethereum replacing Bitcoin as the largest cryptocurrency) launched by the Blockchain Center, the current Flippening index is 39.7%, which means that there is a 39.7% probability that Ethereum currently exceeds Bitcoin. As of press time, the BTC market share is 43.6%, and the ETH market share is 17.3%.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ethereum-london-upgrade-is-about-to-return-to-its-former-glory/
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