After talks of Ethereum (ETH) developing into a deflationary asset, the much-anticipated Ethereum London Upgrade has officially gone live.
At 12:33 p.m. UTC on Thursday, the London hard fork came at block height 12,965,000, leading in EIP 1559. With the upgrade complete, Ethereum’s transaction fee market, as well as other network factors such as gas refunds, will be utterly revamped as a result of the completion of the upgrade.
As per the 1559 Ethereum Improvement Proposal, using it will cause the burning of the base fee after every transaction on Ethereum (ETH). Due to the London hard fork, numerous crypto exchanges such as Binance have declared a temporary halt to Ethereum (ETH) deposits as well as withdrawals.
$ETH network deposits and withdrawals have been temporarily paused on #Binance for the London hard fork.
ETA: 2 hours.
More information 👇https://t.co/qzsdwZjV2P
— Binance (@binance) August 5, 2021
Some advocates of this update purport that it will boost Ethereum (ETH) into a deflationary asset, given that each transaction will result in a percentage of the total coin supply to be permanently withdrawn from the flow.
Joseph Lubin, the co-creator of Ethereum and the founder of ConsenSys, labeled the London update as the crucial part of the mission to make Ethereum (ETH) ultrasound money.
This update and the following activation of EIP-1559 is a huge step toward the transition of Ethereum 2.0, which will alter the network’s mechanism from proof-of-work to proof-of-stake.
The next point on the agenda will be the Shanghai hard fork, which is expected to happen later during the year. This next step is aimed to be achieved right after the London upgrade and after the engineers impede flexibility and rework the transaction fee market.
The price of Ethereum (ETH) has been rising solidly in alignment with the hype regarding the upgrade. Ethereum, the second-largest cryptocurrency in the market is at its peak price since June, with a price of $2,610.
Ethereum (ETH) reached an all-time record of $4,200 in May of 2021. This happened before the cryptocurrency price crisis, which caused major damage to the market, such as Bitcoin who lost 50% of its value, and other altcoins who had an average of 70% in value loss.
Also read: Former CFTC Chair Says Crypto is Not Part of SEC Jurisdiction