Ethereum (ETH), the second-largest cryptocurrency by market cap is nearing one of the most important updates with London Hardfork in the form of EIP-1559. Anthony Sassano, the co-founder of Github revealed a tentative date for the hardfork implementation during a Twitter interaction. Sassano said the hard fork could commence on August 4 but may get delayed by a week or two depending on different factors.
Hoping for August 4th myself but it could be pushed out a week or two from that date depending on various factors.
— Anthony Sassano 🇪🇹🦇🔊 (@sassal0x) July 5, 2021
EIP-1559 was approved in March this year despite miners’ reservations and promises to resolve a long-standing gas fee problem on the Ethereum blockchain. The gas fee problem hit the ETH market at the peak of the bull run that made many Dex protocols barely usable.
EIP-1559 is a proposal to make Ethereum transactions more efficient by using a hybrid system of base fees and tips to more evenly incentivize miners in periods of high and low network congestion. In the proposal, a base fee is an algorithmically determined price you pay for a transaction on Ethereum.
ETH Price Consolidates Above $2,200
Ether price is currently consolidating above $2,200 having risen over 12% in the past week. The second-largest cryptocurrency by market cap managed to solidify its position above $2,000 after the recent market sell-off that saw its price record a new 3-month low of $1,707. Many analysts beleive the recent green price momentum is influenced by the upcoming hard fork and price may surge further in the run-up to the key update.
The exchange reserve volume of ETH also registered a new 2.5 year low as a significant volume of ETH continues to move into ETH 2.0 deposit contracts and a rising number of ETH defi Dex.
$ETH all exchanges reserve reaches a 2.5 year low
— CryptoQuant.com (@cryptoquant_com) July 5, 2021
ETH is currently down over 50% from the new all-time-high of $4,362 but on-chain metrics suggest ETH has a growing market demand amid rising adoption.