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According to a tweet from the founder of EthHub and the presenter of In the ether podcast, Eric Conner, the new Ether emission rate (ETH) is currently at its lowest level. Due to simple economic factors, this decrease in supply could lead to higher prices for the third largest digital badet by market capitalization.
However, the show is only half of the story. For prices to rise, demand must remain constant or increase.
Will upgrades to the Ethereum network generate increased demand for this badet?
With the lowest coin issue rates ever recorded on the Ethereum network, any increase in demand could drive up the price of ETH much faster than before.
The Ethereum Promoter, Eric Conner, pointed out earlier today the drop in the rate of issuance via Twitter. The podcast presenter and educational resource provider has published a graph from the blockchain data firm, Coinmetrics:
The Ethereum emission rate is currently the lowest ever recorded.@coinmetrics pic.twitter.com/Qf8EWXML9a
– Eric Conner (@econoar) February 4, 2019
Of course, a decline in the rate of issuance of an badet does not automatically mean that prices will rise. For this to happen, the demand for ETH should remain constant or increase. Since Ether has been particularly affected by the current bear market of crypto, it is anything but a given at the moment.
That said, the proposed upgrade of the network known as Constantinople could well generate demand, which would lead to higher ETH prices. The scheduled update was scheduled to take place last month. However, it was decided that the upgrade would be postponed until the end of February. Security issues were cited as the reason for this delay.
Will a hard fork in Constantinople raise prices of ETH?
Constantinople should pave the way for Casper's long-awaited update. This improvement will move Ethereum from a proof of work model to evidence of participation. It will also focus on sizing the blockchain so that applications being developed on the network can be used by a much larger number of people without the network crashes, in the same way as the first decentralized application CryptoKitties it was done in 2017.
If the Ethereum network is able to adapt and if a developer manages to create a decentralized application needed on the network, the demand for Ether should also increase because the parts are used to power applications and smart contracts hosted on the blockchain. If the issue rate remains at the levels shown today by Eric Conner, the price of a single ETH is expected to rise much faster than in the previous bull market.
Who knows, it is even possible that the price forecast for 2018 from Alexis Ohanian, co-founder of Reddit, is now ridiculous. The technology entrepreneur said he believed the price of ETH would exceed $ 15,000 by the end of last year.
Related reading: The hard fork Ethereum Constantinople is scheduled for late February as a result of a recent delay
Featured images of Shutterstock.
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