Ethereum EIP-1559 recently went live on August 5th. The long-awaited London Hard Fork arrived just on time at block height 12,965,000. EIP-1559 represents a big step in the move to ETH 2.0. Following the launch, the price of Ethereum has soared in response. Over the past 24 hours, the price of ETH has jumped over 6%. With the coin looking to continue this upward trajectory as more ETH are burned out of existence.
EIP-1559 was meant to change Ethereum’s fee structure. So far, the upgrade is working as intended. Transaction base fees are being burned as transactions are carried out on the network. Starting what might be the beginning stages of ETH becoming deflationary.
Related Reading | Here’s The Reason Behind The Spike In Ethereum Gas Fees
The price surge shows investors continued faith in the Ethereum project. Investors continue to hold on to their coins despite price dips in the market. While demand for ETH looks to be on the rise following the launch of EIP-1559.
ETH Fee Burn
Starting from the launch of EIP-1559 at 12:33 PM UTC, ETH fees have continued to be burnt. The burn rate continues to increase the more time passes. After about 12 hours following the launch, the burn rate was at 2 ETH per minute. Now the Ethereum network has seen ETH fees burned at a rate of 3 ETH per minute in the past 24 hours.
Related Reading | Reddit Moons Now Worth More Than Dogecoin In Impressive Takeover
Over 4,000 ETH have been burned since the launch of EIP-1559. Amounting to over $11 million worth of coins taken out of circulation forever. The burn continues to be one of the most-watched events in the crypto market space currently. With a number of websites reportedly crashing following the high influx of people clicking in to watch the burn.
With less ETH being put into circulation, it increases the value of the coins already in the market. Which translates to price surges like the one currently being experienced in the price of Ethereum.
Ethereum Price Surges With EIP-1559
The price of Ethereum has surged up to break the $2,700 range following the launch. An impressive 6.6% price increase in the last 24 hours. ETH price had been trending up recently leading up to the launch. With a couple of run-ups spread over the past week-and-a-half in the market. Most of the significant price increases happening during the weekends.
ETH price surges 6% following launch of hard fork | Source: ETHUSD on TradingView.com
Despite this price increase, ETH’s total market cap continues to be sluggish. Speculations were the London Hard Fork would see Ethereum gaining more market share. Thereby increasing market dominance. Which would lead to an increase in the market cap of the digital asset. But that has not been the case.
Related Reading | What Is Ethereum EIP-1159? Your Guide To Launch Day Lift-Off
The crypto market received the launch of the hard fork positively. Twitter trends around the world included Ethereum, hard fork, and EIP-1559. Investors and non-investors alike discussed what this fork would mean for the market. And more importantly, what it would mean for the future of ETH.
There is no doubt that the hard fork spells good news for the network. The hard fork launching without being pushed back again shows that the project is currently on track with the current timeline. And the network is one step closer to moving completely to ETH 2.0.
Featured image from Blockchain News, chart from TradingView.com
