Ethereum Treads on Persistence as the London Upgrade Approaches
The price of Ethereum has jumped to a fortnight high as its London Upgrade later this month draws close. This upgrade will introduce the highly anticipated EIP-1559 aimed at reducing gas costs on the Ethereum network. The London upgrade will be deployed to the mainnet after its successful release to Ropsten, Goerli, and Rinkeby testnets. The Rinkeby testnet release is scheduled to come before the end of this week.
After regaining the critically important $2,000 level, the Ethereum price has appreciated considerably in a few days. According to CoinGecko data, Ether, the native cryptocurrency of the Ethereum blockchain, saw its price jump to a two-week high of about US$2,390 earlier today.
ETH price had been ensuing the path of BTC as the market has stayed within a small range awaiting a breakout. The chances are that Ethereum will maintain a value over $2k at least till the upgrade is done.
Ethereum’s fate in the crypto markets is tethered to that of Bitcoin, just like all altcoins; thus, ETH continuing to prosper in the crypto markets is tied on Bitcoin at least recapturing the $38k resistance level.
Ethereum’s 2.0 upgrades are in progress as it transitions from a proof-of-work to a proof-of-stake consensus mechanism. The Beacon Chain upgrade, implemented late last year, was the first Ethereum 2.0 upgrade and brought staking to the Ethereum ecosystem.
Ethereum mainnet’s merge with the Beacon Chain’s proof-of-stake system will be the end of proof-of-work Ethereum and is scheduled to take place soon.
According to Ethereum software company ConsenSys, more than 170,000 validators have staked over 5.4 million ETH on the Beacon Chain. The validators have an annual percentage return of 6.6%.
Multinational Investment bank J.P. Morgan predicted in a recent report that Ethereum’s move to proof-of-stake could drive crypto adoption and enable the staking industry to advance from US$9 billion to US$40 billion by 2025.
The Ethereum2.0 deposit contract has been the target of a good amount of ETH leaving crypto exchanges. The ETH2.0 deposit contract now holds ETH valued at approximately $13 Billion at the time of writing.
Upside Momentum for Ether
Ether, which had a market cap of almost US$265 billion at press time, is the second-largest cryptocurrency by market value, and the vast majority of decentralized finance protocols and stablecoins operate on the Ethereum network. According to DeFi Pulse, the total value locked in DeFi protocols on the Ethereum DeFi ecosystem has remained the largest, with a TVL of US$55 billion.