The price of ether (ETH), the cryptocurrency of Ethereum, exceeded USD 3,000 on August 7, a value that had not reached since last May.
According to CoinGecko data the price of ETH reached USD 3,159 in the first hours of this Saturday, registering a rise of more than 5% in the last 24 hours. The upward trend takes the average weekly growth to more than 23% .
As observed in the price graph, the growth of the cryptocurrency has been sustained since the activation of the London update, a hard fork or hard fork of the network that occurred on August 5, as reported CryptoNews.
It is thus established that London is one of the main reasons for this price increase , although, in general, the entire cryptocurrency market is currently in the green.
The hard fork added to the network one of the most anticipated improvement proposals by the community regarding this cryptocurrency: EIP-1559.
With this solution, the mechanism by which fees are paid to miners was modified, by introducing the concept of “tip” and adding the burning of commissions. It is expected that with this the currency will become deflationary and that the amount of commissions will fall.
It is a change that may materialize in the long term , as explained in this medium. In this sense, the Ethereum Foundation considers that the collaboration of the wallets will be essential for the improvement proposal to reduce the fees paid on the network.
The commission burn started on 6 August. In the immediate term, as a result of the update, around 10,340 ethers have been destroyed, equivalent to some USD 31.5 million , according to Etherscan figures.
ETH price advances, but still does not exceed its all-time high
Although with this price ether is still far from the historical maximum of more than USD 4,300 established on May 11 of this year, in the last three months had not exceeded USD 3,000 .
The cryptocurrency has been below that amount since May 19, when the entire cryptocurrency market fell – along with bitcoin – in a downward trend that lasted until a week ago.
The prolonged market downturn was related to the decision of Elon Musk’s electric car company Tesla to leave to accept bitcoin. This, together with the uncertainty that was generated due to the repression of miners and the obstacles to the commercialization of cryptocurrencies imposed by the government of China .
As a result of these news, Bitcoin and Ethereum equally lost more than 50% of their value, after having exceeded several historical highs throughout the first months of 2021. At the time of writing, the value of ETH is $ 3,031 according to CryptoNews price calculator.
