Ether's price surged in cryptocurrency markets following one of the largest upgrades to the ethereum blockchain in the network's six-year history according to websites monitoring the blockchain the upgrade dubbed the london hard fork occurred shortly after 12 30 coordinated universal time 8 30 am et
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on thursday then ether eth the second largest cryptocurrency by market capitalization after bitcoin btc remained stable for an hour before surging as of press time ether
was trading around 2780 up from around 2600 just before the adjustments took effect according to coindesk 20 data crypto traders had been eagerly awaiting the upgrade closely monitoring the rollout for indications of how
the modifications would affect the rate of fresh ether issuance by the blockchain a critical aspect in establishing the supply demand balance additionally analysts emphasized the possibility that anything would
go wrong during the implementation of the new technology ether staged a strong climb in the weeks preceding the london hard fork breaking out of a two-month consolidation period compared to bitcoin the price of ether has more than
tripled this year for surpassing bitcoin's 31 gain this reinforces the existing bullish trend and atmosphere in the ethereum community said alexandra laws quantum economics analyst many cryptocurrency investors are focused
on one aspect of the upgrade called ethereum improvement proposal aip 1550 which modifies the network's fee structure in such a way that a portion of the cryptocurrency supply is burned or removed from circulation the wager
is that as a result of the move the blockchain's net issuance of new cryptocurrency units will decelerate ultimately assisting in establishing a flaw beneath the price analysts at stack funds and elsewhere have drawn parallels between the london hard fork and
implementation of eip 1559 and the bitcoin blockchains every four year halvings in the sense that significant changes in the cryptocurrency's supply growth are implemented at specific points in the blockchain's life cycle some speculators believe that bitcoin's
previous halving events aided in the rise of the underlying cryptocurrency's valuation according to the website ultrasound.money as a 1506 utc around 585 eth in fees has been destroyed or roughly 43 of the block rewards granted
after the ethereum hard fork took effect at data block number 12 965 000. furthermore as twitter user eric.f pointed out at least one data block mind following the hard fork resulted
in more fees being burned 2.078 eth the new coin being generated 2 eth however like with previous bitcoin halvings it may be some time before the entire impact of ethereum's london hard fork
is apparent as any ether price changes that occur may be delayed once the update is activated a mechanism will be activated to burn a portion of the fees given to miners while this component of eip 1559 may assist support
the price of ether it is viewed as controversial due to the possibility of reducing ethereum miners revenue until today ethereum's gas fee was determined by a free market users set aside a fixed amount of eth for transaction
processing and the highest bidder receives priority according to compass mining miners revenues will decline by 20 to 30 percent following the upgrade as a portion of their fees will be burnt significant milestone
the ethereum network has previously undergone several improvements but this is arguably the most significant in the network's history in 2016 the dow hard fork occurred which was a significant event since it altered the appearance
and community of ethereum the december 2020 introduction of the eth 2.0 beacon chain was also a significant event while not a hard fork it established a new version of ethereum that would use proof of stake pos between 2015
and 2019 the network received two significantly less obvious improvements dubbed constantinople and ice age in 2015 ice age developed the difficulty bomb a technique embedded into ethereum
that gradually increases the difficulty of mining since then the difficulty bomb has been frequently delayed indeed one of london's eips delays.