How to view the upcoming Ethereum London upgrade

Zhitong Finance APP learned that on Thursday, the world’s second largest cryptocurrency Ethereum will soon undergo a major software upgrade, and this upgrade will likely boost the price of Ethereum.

The code name of this upgrade is “London”, which will reduce the growth rate of Ethereum supply. Kyle Samani, co-founder of Multicoin Capital, an investment company that owns Ethereum, said: “This upgrade will be one of the most interesting and important upgrades in the history of Ethereum.” He believes that reducing the supply of the coin can increase scarcity. Thereby increasing prices.

Ethhub co-founder Anthony Sassano stated on Twitter on July 26 that eip-1559 will be released on the Ethereum main network within about 10 days during the Ethereum core developer conference. Ethereum developer Trent stated that all participants All of them insisted that the London network upgrade (including the eip-1559 upgrade) should be carried out at a block height of 1,2965,000, which is expected to be carried out at 17:35 on August 5th.

The reason why the London upgrade has attracted much attention and is seen by the market as a new market boom and an important positive promotion of the market rise is mainly because the deflation caused by the EIP-1559 included in the London upgrade, that is, the amount of destroyed Ethereum exceeds the amount of Ethereum that enters circulation. The new supply will not only bring about new changes in the supply and demand of Ethereum, which will lead to an upward trend in the price of ETH, but it is also very likely to drive the overall market for cryptocurrency to new upward opportunities.

Tim Beiko, the coordinator of Ethereum’s core developers, said in an interview that basic handling fees now account for about 25% to 75% of gas fees paid to miners. Once these coins are burned, Ethereum

The current lowest estimate is that 700 ETH is destroyed every day, and 250,000 ETH is consumed every year. If 6000 ETH is destroyed every day, 2 million ETH will be destroyed every year.

The continuous decrease in supply will provide the greatest support for price increases.

On July 27th, trader Brian Kelly (Brian Kelly) stated in a guest CNBC program that the upcoming London hard fork and the much-watched EIP-1559 will greatly change the currency policy of Ethereum. Faced with criticism of unrestricted supply, it will become a deflationary currency, which will help fuel the argument of “store of value”.

Katie Talati, vice president of research at the crypto asset management company Arca, said in an interview: “This is just to make the overall user experience better, because theoretically, there should be fewer failed transactions.”

Beiko also stated that although the upgrade will hit the miners, they should still benefit over time because the value of their Ethereum holdings is growing.

Slava Karpenko, CTO of the Ethereum mining pool 2miners, said: “If the Ethereum ecosystem becomes stronger and larger, we will certainly benefit from it, just like ordinary users. Moreover, miners can still perform transactions by helping traders ( Such as arbitrage trading) to earn gold coins.”

According to data from Santiment, the top ten non-exchange whales in Ethereum are increasing their holdings. This week, the group’s holdings reached 21.3 million ETH, a 5-year high. At the same time, the ETH holdings of the top ten exchange whales have recently fallen to 4.66 million, which is the lowest level since the launch of ETH in 2015.

Under the estimated value upgrade that deflation may bring, the market is very optimistic about the follow-up upward trend of ETH.

CNBC host Jim Cramer is still bullish on Ethereum, even though ETH has fallen 52% from its all-time high of $4,356 on May 12. Cramer said in a recent tweet that he will stick to his position on Ethereum.

According to previous news, Cramer recently revealed that he has sold most of his bitcoin holdings, but then said that he is still bullish on the crypto market because of a lot of capital inflows. I will continue to buy Ethereum because people actually use it more to buy things, including NFTs, etc. Ethereum is not just a currency.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-to-view-the-upcoming-ethereum-london-upgrade/
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