August 5th 2021 marked a rather special day for Ethereum. It was the day the London Hard Fork (or EIP 1559) was enacted. With EIP 1559, Ethereum became a little less inflationary. With every block, some ETH gets burned, and the total new supply of ETH gets a little lesser.
ETH developers claim this makes ETH even more like money. NFTs are already routinely being priced in ETH, and so, this will definitely help boost the longer term price action for ETH.
They even had a countdown and a watch party and all that jazz. I have to say, since I hold some ETH, that I was excited for this event as well. If only as a spectator and be witness to the crossover event, and witness the first few blocks that started burning ETH.
ETH Burn
3 days in, and we’ve already seen 13,318 ETH being burned. At current prices, that’s more than USD $41,600,000! In 3 days!
Current burn rate is 2.8ETH per minute.
With this supply cut, the $10,000 ETH price predictions for December 2021 doesn’t seem so far fetched anymore. In fact, it might even seem slightly bearish.
This is all part of multiple changes as they gear towards ETH 2.0, a fundamental shift in how the Ethereum blockchain works.
Ethereum has always been pitched as the currency of the internet. On the back of the blockchain, we’ve seen the birth and expansion of DApps, DeFI, and a resurgence of NFTs this year, with the likes of Beeple and cryptopunks now routinely selling for hundreds of thousands of dollars.
With ever expanding use-cases and platforms, and now a less inflationary base layer “currency”, I’m looking forward to a surge in ETH price.
And who knows, maybe even the flippening in market cap of Bitcoin to be the #1 cryptocurrency sometime in the future!
Pingback: Crypto in Review – August 2021 | Side Hustle Rich