Ethereum Crypto News: What Is the Big Catalyst for Ethereum Prices on August 4?

It’s looking like Aug. 4 will be a big day for Ethereum (CCC:ETH-USD) with the release of the long-anticipated London hard fork. Ethereum prices hit recent highs in anticipation of what have been described as major protocol upgrades. The price of the Ethereum crypto has increased 10.4% in the last seven days, to $2,383.72.

Another stylized version of the Ethereum logo

Source: shutterstock

What holders of the second-largest cryptocurrency by market capitalization are waiting for are five Ethereum Improvement Proposals (EIP), including EIP-1559 that  launched on the Ropsten testnet on June 24, setting the stage for the full mainnet implementation later this month.

The hard fork will likely boost Ether’s value thanks to several proposal upgrades, including the transition to the “greener” proof-of-stake consensus and a new “scarcity” feature that will reduce the number of tokens in circulation. Investors are expected to increase their exposure to ETH-USD heading into the hard fork reveal.

Ethereum Crypto Derives Strength From Architecture

A key factor in Ethereum’s position is its role in the $81 billion decentralized finance (DeFi) landscape, as most of that market is underpinned by ETH-USD. At the same time, Ethereum prices closely track Bitcoin (CCC:BTC-USD).

As Ethereum is the blockchain programmer’s go-to platform, you can imagine that the London hard fork has raised the ire of the developer community. Website Bitcoinist reported earlier today that “tempers are fraying” after the announcement of the Aug. 4 rollout. It noted that a critic of EIP-1559 described it as “a ‘band aid to appease speculators,’ implying that it provides little in the way of tangible benefits.”

EIP-1559 introduces a new fee structure to make Ethereum less inflationary, according to CoinDesk contributor Myles Sherman. “This protocol change is highly controversial because it aims to burn part of the fees, hence decreasing miner revenue,” he wrote yesterday.

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC