A new update is happening to Ethereum that could bring sudden spikes on its market value.
The Ethereum Improvement Proposal (EIP) 1559 is set to take effect soon, and it's something investors should look forward to.
After its sudden dip on July 20, Ethereum rode upward momentum that showed no signs of stopping. At the time of writing, the Market trade value is $2,448.85.
Using this progress to their advantage, the second-largest blockchain network recently reported a scheduled software upgrade that could greatly improve transactions being processed.
It would, however, "burn" a few ETH coins in the process. This method should reduce coin supply and sharply boost the ETH market price.
Ethereum Price Prediction
The crypto market is a growing trend on the internet that captured the interest of investors and policymakers. After many years of trading, Ethereum prepared new updates on its trading system to further improve its services.
Fox Business reported that the policymakers took key challenges to improve digital money as trustworthy, accessible, faster, and cheaper than paper cash. However, digital money "must be regulated, designed, and provided so countries maintain control over monetary policy, financial conditions, capital account openness, and foreign exchange regimes."
Ethereum introduced its London update as a system solution to the challenges listed.
Ethereum Major Upgrade - EIP-1559
According to Finextra, the Ethereum Improvement Proposal (EIP) 1559, codenamed as London update, should launch on August 4 between 13:00 UTC and 17:00 UTC. This system would issue miner payments (also known as gas fees) for its process transactions.
This is, unfortunately, bad news for short-term investors because gas fees will be paid directly from the miners' pockets. The gas fees would also be removed from circulation in a process known as burning. User base fees are estimated to be 25% to 75% of the gas fees paid to miners.
However, this system also has its advantages, it would add a different mechanism for verifying its transactions. This would result in a faster trading process, and fewer failed transactions in the long run.
Simply put, Ethereum plans to make its coins a lot more expensive by burning its supplies. This method will undoubtedly spike up market activity, giving investors a lot of opportunities to open trade.
This is a force update on the Ethereum system. According to Bloomberg, London would later deploy a "difficulty bomb" in December, which would lead to the coin being impossible to mine.
While this sudden change is both drastic and expensive, long-term investors see many opportunities in the London update.
Some of the benefits emphasize an improved system that would follow through with local government regulations. The new system would also provide transparent pricing on transaction fees for ETH. Lastly, the Ethereum ecosystem could grow stronger and larger over time.
In highlight, the London system update will bring significant and expensive changes to the Ethereum market trading. It would also improve Ethereum's overall performance and produce big market boosts in the long run.
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