Ethereum is making new highs every day and is currently trading at $2220 according to CoinMarketCap. This is primarily driven by the upcoming hard fork that will take place tomorrow. The fork aims to address the extremely high fees that make it almost impossible to transact on the network.
As things stand, an average Ethereum transaction costs about $38. It’s so high that traders and developers have been increasingly looking to other networks for their transactions. The upgrade is a short-term measure and is aimed to clear the way for a much bigger upgrade later in the summer.
However, the much bigger upgrade, dubbed the London upgrade, has not gone well with miners. That’s because one of its proposals is to burn some of the fees accumulated by miners. That said, tomorrow’s upgrade will likely effectively address the increasingly serious issue of fees on the Ethereum blockchain.
One of the upgrades focuses on certain transaction types that have been the key reason behind the high fees. The upgrade also seeks to come up with a new transaction envelope. The idea behind these envelopes to allow for the packaging of multiple transactions in one transfer.
The anticipated Ethereum upgrade has come at a time when the market is quite bullish. Bitcoin and most altcoins are making new highs by the day. This has been instrumental in giving the second-largest cryptocurrency some upside momentum. It will be interesting to watch how it trades after the upgrade.