- Ethereum network sees short spikes in gas fees.
- ETH burn rates have led to massive production in deflationary blocks.
- The price of ETH is presently bullish.
Following the launch of Ethereum’s London hard fork, the supply of ETH went on a short fritz. To be specific, high burn rates have led to a short spike in gas fees. This move has led to the production of around 800 deflationary blocks.
The much-anticipated London hard fork is already making its mark. Just a few days after its launch, the community is witnessing a spike in the network transaction fee. This, however, only lasted for a couple of hours. Still, the fee burn rate has led to a deflationary supply.
On average, the ETH Burn Bot tweets about the number of ETH burned. It records the burning initiative that went live with EIP – 1559. This allows users to keep a count on how much ETH is being burned.
Moreover, these tweets also let users calculate how much ETH is burned in relation to time. This way they can be certain about the deflation rate on the blockchain. As ETH hodlers are receiving fewer rewards with this new proposal, it is important to keep track of all developments on the network.
For instance, if the amount of burned ETH is higher than that of the mining reward, deflationary blocks will be produced. This in turn results in a temporary decrease in ETH supply. According to CoinGecko, the price of ETH is at $3,230.25 with a market cap of $378,815,938,767, at the time of writing.
The London hard fork is a step towards bringing Ethereum 2.0. The launch of Ethereum 2.0 has been teased for a long time. However, it has been delayed time and time again and is now in its sixth year. Founder Vitalik Buterin says this will be the last delay.
As for the price of ETH, it is currently showing bullish signals. The price has been up by 1.9% over the last hour, 3.9% over the last 24 hours, and 28.4% over the last 7 days. While this is a great rally for the crypto titan some analysts are still skeptical about a massive bull run.
This is not to say that ETH won’t see a massive bull run. Just that it will most likely occur only after Ethereum 2.0 is fully out. Most investors are certain that ETH will reach $10,000 in the near future. Although, this may simply take longer as it has with Ethereum 2.0’s release.