Barely two days after the highly-anticipated London Fork upgrade of Ethereum was activated, the second-largest asset price has continued to spike significantly as its value has risen above the $3k level for the first time since May.
Although the price is still far below its all-time high of $4,357, the asset has not seen this level in three months. It last reached the level early May, before the historical fall of May 19, causing several cryptocurrencies to plummet and trade downward for months.
Ethereum’s value loss is attributed to Tesla’s withdrawal of its Bitcoin payment support and china’s threats of a crypto crackdown. The aftermath saw Bitcoin and Ethereum losing 50% off their ATH price value, while the entire crypto market also followed the trend, losing early-year gains.
Ethereum price fell considerably below $2k recently. However, it has been raking in massive gains of over 50% for a few weeks, resulting in the $3000 price level passed today.
This rise has been attributed to the network’s much-awaited upgrade recently updated, which implements multiple community improvement proposals.
The said London Hard Fork upgrade which consists of EIP-1559 changes how fees are calculated and saves users Ether from high transaction fees. The saved fees are burned and kept in an uncontrolled and inaccessible wallet. This, inadvertently, lowers the supply of ETH.
According to available data, more than $12,000 worth of ETH is being burned per minute since the introduction of the new update. About 8,600 ETH from the network nearly two days—a staggering $25.8 million worth of cryptocurrency.
Since the launch of EIP-1559, the asset price has seen about a 7.85 percent gain, arriving at over $3000 today from $2,583.