After sideways movement and being under pressure over the past week, the price of Ethereum (ETH) has shown a strong recovery. At the time of writing, Ethereum has gained almost 5% and surpassed the $ 2,150 level.
Some of the network indicators indicate an uptrend. Another important reason for the growth is that the activity on the blockchain of the second largest cryptocurrency by market capitalization has exceeded that of the Bitcoin network.
The long-awaited London hard fork was launched on the Ropsten testnet last week on June 24, and the developers are scheduled to launch on the mainnet in July.
The EIP-1559 modification will be made to the hard fork, which changes the mechanism for calculating the Ethereum transaction fee. In addition to changing the fee structure, EIP-1559 aims to implement a “base fee” burn mechanism that will eventually make the Ethereum economy deflationary. At the moment, more than 88 thousand ETH, worth about $ 177 million, have been burned on the Ethereum Ropsten testnet.
The ropsten testnet has already burned almost 90k ETH.
According to experts of the blockchain company ConsenSys, the implementation of EIP 1559 will reduce the annual supply at a rate of -1.4%.
Retail and institutional demand for Ethereum has skyrocketed lately. The host of CNBC’s Mad Money show Jim Kramer said he is optimistic about Ethereum’s development as a lot of money is being poured into it.
Optimistic. It should be. Too much money is coming in, ”said Jim Kramer. – I returned to ethereum because bitcoin was held at $ 30,000. I like ethereum because people are much more likely to use it to shop for things.
“Bullish. Have to be. There’s too much money coming in,” says @JimCramer. “I went back into #ethereum because #bitcoin held $30K. I like ethereum because people actually use it much more to be able to buy things.” pic.twitter.com/IIAeUL4BNL
— Squawk Box (@SquawkCNBC) June 28, 2021

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