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Ethereum EIP-1559 recently went live on August 5th. The long-awaited London Hard Fork arrived just in time at a block height of 12,965,000. EIP-1559 represents a big step in the transition to ETH 2.0. After launch, the price of Ethereum skyrocketed in response. In the past 24 hours, the price of ETH has jumped over 6%. The coin seeking to continue this upward trajectory as more ETH disappears.
EIP-1559 was intended to change Ethereum’s pricing structure. So far, the upgrade is working as expected. Base transaction fees are burned as transactions are made over the network. Start what could be the start of ETH going deflationary.
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The surge in prices shows that investors continue to believe in the Ethereum project. Investors continue to hold onto their coins despite the price drops in the market. While the demand for ETH appears to be on the rise after the launch of the EIP-1559.
ETH Fee Burn
Since the launch of EIP-1559 at 12:33 UTC, ETH fees have continued to burn. The burn rate continues to increase as time goes on. About 12 hours after launch, the burn rate was 2 ETH per minute. Now the Ethereum network has seen ETH fees burned at a rate of 3 ETH per minute for the past 24 hours.
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Over 4,000 ETHs have been burned since the launch of EIP-1559. Amounting to over $ 11 million in coins withdrawn from circulation forever. The burn continues to be one of the most watched events in the crypto market right now. With a number of websites reportedly crashing as a result of the large influx of people clicking to watch the burn.
With less ETH put into circulation, it increases the value of coins already on the market. This translates into price spikes like the one currently experiencing the price of Ethereum.
Ethereum prices rise with EIP-1559
Ethereum’s price jumped above the $ 2,700 range after launch. An impressive 6.6% price increase in the last 24 hours. The price of ETH had tended to increase recently prior to launch. With some accelerations spread over the last week and a half on the market. Most of the big price increases happen on weekends.
ETH price surges 6% following launch of hard fork | Source: ETHUSD on TradingView.com
Despite this price increase, ETH’s total market capitalization continues to be slow. Speculation was that the London Hard Fork would see Ethereum gain more market share. Thus increase market dominance. Which would lead to an increase in the market capitalization of the digital asset. But that was not the case.
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The crypto market has welcomed the launch of the hard fork. Twitter trends around the world included Ethereum, hard fork, and EIP-1559. Investors and non-investors discussed what this range would mean for the market. And more importantly, what that would mean for the future of ETH.
There is no doubt that the hard fork is good news for the network. Launching the hard fork without being postponed shows that the project is currently on track with the current timeline. And the network takes one more step towards a full switch to ETH 2.0.
Featured image from Blockchain News, chart from TradingView.com
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