This Friday, ETH developers may announce the date of the London hard fork. About this on my twitter wrote EthHub founder Anthony Sassano.
Hoping for August 4th myself but it could be pushed out a week or two from that date depending on various factors.
– Anthony Sassano Ξ 🦇🔊 (@ sassal0x) July 5, 2021
“At the weekly ETH developers meeting (July 9, 14:00 UTC), we will discuss and possibly announce the block number and launch date for London,” reads the tweet.
The market hopes that the chain will move to London in July, however, according to Sassano, the update will happen on August 4th at best.
This update will implement the long-awaited improvement to EIP-1559, which will change the reward scheme for miners and is expected to contain the growth of fees.
The market took everything into account
According to Chen Limin, Chief Financial Officer and Head of Trading Operations at ICB Fund, the cryptocurrency market has already incorporated London and EIP-1559 into ETH. Moreover, according to the expert, this could be one of the reasons for the rapid growth of the cryptocurrency at the beginning of the year.
“The inclusion of the resonant EIP-1559 into the London hard fork, which will introduce a mechanism for burning most of the commissions, became known back in March. This event, along with the increase in ETH transfers by users to the deposit contract of the second version of the protocol, could have caused the Ethereum rally from the third decade of March to May, until the market crashed as a whole. ”
The expert drew attention to the fact that the ETH dominance index is holding near the 2018 highs. If at the beginning of the year the second largest coin accounted for 11% of the market, now its share is 18.65%, and in May it reached 20%.
“This situation suggests that the price reflects to a high degree the positive expectations of a reduction in inflation in the network,” said Chen Limin.
Long-term effect will last
Despite the fact that London is already included in prices, experts believe that the positive effect will continue in the long term due to the deflationary mechanism implemented in the EIP-1559.
“From the category of psychology, he will go into the technical area, as it will limit the supply of coins, especially if there is a further flow of funds to ETH2,” explained the CFO of ICB Fund.
The expert is confident that, all other things being equal, the growth of the Ethereum price will go faster compared to what it could have been without the activation of EIP-1559.