In his Twitter, he noted that ETH developers may announce the date of the London hard fork this Friday.
The market hopes that the chain will move to London in July. However, in a comment below, Sassano indicated that he expects London to be implemented later this summer on August 4th.
However, he acknowledged that the event could postponed to a later date. By about a week or a little longer.
The London update will bring significant changes to Ethereum’s transaction fee system. Which has long been the subject of controversy due to network congestion, which has hosted the vast majority of Decentralized Finance (DeFi) and Non-Fungible Token (NFT) projects. Two sectors that have grown over the past year. exponentially. The update will also prepare the evolution of the network for the so-called Ethereum 2.0. A complete transition from the Proof-of-Work (POW) to Proof-of-Stake (POS) consensus model. The London hard fork will unveil new Ethereum Improvement Proposals (EIPs) that aim to make the blockchain more price-competitive as well as user-friendly.
Many blockchain problems arise from the network’s inability to scale to higher speeds. In its current state, it can only handle about 30 transactions per second. While a payment system like Visa can handle about 1,700 transactions per second.
Updating the London hard fork will help address the scalability issue.
Long-term growth in the value of Ethereum
The cryptocurrency market has already incorporated “London” and EIP-1559 into the value of ETH. Moreover, according to experts, this could be one of the reasons for the rapid growth of the cryptocurrency at the beginning of the year.
However, despite the fact that London is already included in prices, experts believe that the positive effect will continue in the long term due to the deflationary mechanism implemented in EIP-1559.
Experts are confident that, all other things being equal, the ETH price will grow faster than it could have been without the activation of EIP-1559.
According to analyst Michaël van de Poppe, ETH could grow by almost 40%.
Thus, it can be concluded that traders see huge growth potential in the ETH market.
ETH supply on exchanges fell to historic lows
Analyst firm CryptoQuant shared that the ETH balance across all cryptocurrency exchanges fell to a minimum in 2.5 years.
Prominent crypto trader and entrepreneur Willy Woo commented on this, suggesting that the fall could have two explanations.
First, users are withdrawing Ethereum to block it on various exchanges and DeFi apps like Uniswap. The second reason, in his opinion, is that the validators are putting Ethereum into the ETH 2.0 deposit contract.
Overall, the decline in the amount of ETH on exchanges is clearly a positive indicator that relies on investor confidence in the future of the blockchain. In addition, the depletion of ether on the exchanges will contribute to limiting circulation, which can positively affect the price.