In anticipation of the Ethereum London update, the price of Ether has soared by 20% over the past weekend. The long-awaited Ethereum London update — which isn’t actually occurring in London — is the 11th hard fork that will seek to upgrade the underlying blockchain network for Ether, the King of Altcoin. Among the five Ethereum Improvement Proposals (EIPs) featured in the update, EIP 1559 has attracted the most attention.
Why Is EIP 1559 in the Spotlight?
Ethereum’s auction-style fee market records over $5 million a day in transaction fees, making Ethereum’s blockchain the most expensive in the world. The introduction of EIP 1559 will reduce the volatility of Ether’s transaction fees.
The game changer? EIP 1559 will establish a “burn” mechanism to counterbalance the growing ETH supply. According to a simulation of EIP 1559 on Dune Analytics, cumulative ETH burned over the course of a year is estimated at 2.9 million. As the scarcity of ETH increases during the burn, will the price of Ether soar?
Ether Gives You Wings
Thanks to positive affirmations from tech juggernauts, including the TechnoKing of Tesla, the winds of change have turned in favor of the crypto market — especially altcoins. BTC price has increased for the past three days, alongside ETH, DOGE and DOT, which are on similar bullish rallies, indicating a possible Alt Cycle.
Ethereum’s net unrealized profit/loss (NUPL), which is used to determine profit and loss of the network as a whole, has deviated further from zero to above 0.5, which hints at the probability of bullish signals. During the 2017’s bull run, ETH’s NUPL has reached above 0.5.
The number of ETH active addresses made a V-shape jump this week, indicating renewed interest and activity from the crypto community. Fun insights: In early July, Ether had 49k more active addresses than Bitcoin.
In the last 24 hours, 51.7% of ETH futures are long positions on Bybit, outweighing the short positions.
May the “Alts” be forever in your favor!