The biggest Ethereum upgrade of the year brought the price of the coin above $3,200. At the time of this writing, Ether is trading at $3, 231.
Ethereum network underwent London upgrade also know as ‘London Hard Fork‘ on August 5th. The upgrade has sent the currency on a road to deflation.
On August 7th, the price of ETH crossed $3,000 for the first time in 79 days. Investors are now expecting the bull run to regain. The off-shooting of the price resulted as the new buyers entered the network.
The news of the London hard fork caused ETH to experience a ‘sell the news’ moment. Many holders of Ether sold off their coins shortly after the upgrade went live. Nonetheless, new investors were ready to buy the dip. The purchase sent the price of Ether back up the $2,800.
What Ethereum Upgrade Means?
The upgrades are interconnected events that will take Etehreum to a more scalable, secure, and sustainable version also known as Ethereum 2.0. It is a shift from proof of work to proof of stake.
The network charges a fee for processing transactions. With the upgrade, a part of the fee will be burnt. The burning process involves sending the coin to a dead address. This process is irreversible. It will reduce the supply of coins in circulation.
Impact on Price:
Last night the supply of Ethereum was diminished after the burnt coins exceeded the number of issued coins. At 22:00 UTC, 545 coins were burnt within a time period of one hour. The supply of coins per hour is reported to be 532 ETH. So the currency faced a deflation of 13 ETH for a brief period of time.
The upgrade is bound to bring additional spikes in the price of the currency. As a result, investors’ interest in Ethereum coins will grow.