The cryptocurrency industry is constantly changing and this is particularly true of the blockchains behind top tokens like bitcoin and ether. Bitcoin, for example, has seen several hard forks that have led to the creation of bitcoin cash and bitcoin SV. Now that the industry is seeing even wider success, there is the need for hard forks and upgrades that make blockchain ecosystems more compatible for widespread use.
The Ethereum blockchain has recently undergone its highly anticipated London hard fork and following this change, the price of the ether token has increased and there has been further discussion on the future of the network.
The Market Response to the Upgrade and What it Means
Following the completion of the hard fork, the price of the Ethereum network’s ether token rose to $2,620, representing an increase of 3.9%. This is down to the fact that this upgrade has massive implications for the Ethereum network as a whole, especially when it comes to its gas fees.
Ethereum gas fees are notoriously unstable, especially given the number of products and services that are built on the network such as DeFi. The last few months have been particularly volatile but this new hard fork is working to change this.
The London hard fork will ensure uniformity in gas prices and since it went live, over $300,000 worth of ETH has been burned by the network to ensure this stability. The tokens being burned will also lead to a decrease in the supply of ether which, in turn, will drive up its price.
While this new development is exciting in itself, perhaps the most anticipated change in the Ethereum Network is the Ethereum 2.0 upgrade which will switch the network from a proof-of-work protocol to a proof-of-stake protocol.
Announced by the Ethereum Foundation earlier this year, this shift in protocol will reduce the amount of energy needed by the network by over 90%. This comes as top tokens like bitcoin have been criticized for their immense energy use and the potential long-term effects if widespread use is achieved.
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