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Ethereum

cryptocurrency: Crypto week at a glance: Digital tokens rally, Ethereum goes through London Hard Fork

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Cryptocurrency enthusiasts were waiting for such a fantastic rally for quite some time. It was a fabulous week, where we saw Bitcoin finally managing to break out from a prolonged consolidation phase. However, despite Bitcoin’s stellar performance, it was Ethereum that was the talk of the town.

One of the most significant upgrades to the Ethereum network happened this week. The ‘London Hard Fork’ went live as block number 12,965,000 got added to the blockchain network.

This upgrade is a major step towards making Ethereum deflationary. It promises to make the network more scalable. The London Hard Fork also acts as a prelude to ‘Serenity’ or ETH 2.0, which will likely be live by the end of the year.

The anticipation of the upgrade kept ETH investors on their toes. However, a rally that lasted twelve successive days indicated that the upgrade was well received by the Ethereum community.

The crypto market cap stood at a massive $1.8 trillion as of August 7, 2021, translating into a more than $400 billion jump for the week. The massive rise in trading volumes signaled that the momentum is bullish. Markets have finally managed to reach the highs touched in June.

Crypto adoption into mainstream finance has picked up pace. Even the bearish markets during the past month did not hinder this. Germany has been progressing towards crypto adoption for some time now. They are coming up with ‘Spezialfonds’ that are accessible to institutional investors.

German regulations have allowed these hedge funds to hold 20 per cent of their assets in cryptos. Spezialfonds manage €1.8 trillion worth of assets. If these funds flow into the crypto markets, there is a much larger bull run to come.

The company Ripple, which issues the token XRP, has been engaged in a lawsuit with SEC. This has been taking a toll on the price of XRP for a prolonged time. However, some recent developments indicate that the judgment might be in favor of Ripple. The price of XRP also shot up after investors’ sensed victory.

The crypto markets rose almost linearly over the past week. This will halt at some point. The next week could likely be a period of consolidation for the markets. However, the markets have managed to come out of the grip of the bears and that is a good sign for both the short and long-term investors.

Among the top 10 cryptocurrencies, the best performer for the week has been Uniswap, followed by Polkadot and Ethereum.

Top 5 crypto gainers during the week:

  • Voyager token (VGX): 49 per cent up
  • Ravencoin (RVN): 46 per cent up
  • Internet Computer (ICP): 41 per cent up
  • Qtum (QTUM): 40 per cent up
  • Elrond (EGLD): 35 per cent up

Top 5 crypto losers this week:

  • Amp (AMP): 14 per cent down
  • Theta Fuel (TFUEL): 8 per cent down
  • Siacoin (SC): 8 per cent down
  • Decred (DCR): 8 per cent down
  • IOTA (MIOTA): 5 per cent down

(Edul Patel is CEO & Co-founder of Mudrex)

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Blockchain

MyEtherWallet CEO notes two ‘crucial’ components of Ethereum London upgrade

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Ethereum underwent an upgrade on Thursday, bringing with it a number of alterations to the network’s blockchain. CEO and founder of MyEtherWallet, Kosala Hemchandra, pointed toward two changes of particular importance. 

“The London upgrade adds around 5 changes to the current Ethereum network; however, I believe that only 2 of them are crucial to day-to-day users,” Hemchandra said in comments sent to Cointelegraph. Noting “time bomb delay” as the first of the two, he added:

“Since the inception of Ethereum there was a hard coded value basically responsible to make sure Ethereum will move to PoS or ETH 2.0 on time. This value is responsible for making the block difficulty exponentially hard after a certain block number thus making it impossible for miners to mine new blocks and they have to move to ETH 2 network. However, because of development delays this time bomb kept getting delayed and in the London fork, it’ll be postponed one last time.”

Ethereum has suffered scalability issues in recent years, particularly evident in the high fees present when using decentralized finance, or DeFi, solutions. A long time in the making, Ethereum 2.0, or Eth2, looks to bring scalability to the Ethereum blockchain, which includes shifting to a proof-of-stake, or PoS, consensus mechanism. Eth2’s roadmap officially kicked off in December 2020.

Ethereum’s recent London hard fork included five Ethereum Improvement Proposals (EIPs). One of those proposals, EIP-1559, seeks to giv the blockchain a deflationary effect on its native asset, Ether (ETH). Hemchandra noted EIP-1559 as the second important change brought by the London hard fork.

“EIP 1559 is the highly debated change which, in essence, changes the structure of how Ethereum tx fees are handled,” he said, adding:

“This will bring a couple of major changes, such as burning the transaction fee, which will reduce the increase of overall ETH in circulation. However, since miners will no longer receive the tx fees as an incentive this change was highly debated. This change also brings a tipping mechanism to tip the miners for including your tx, and this tip will go directly to the miner and will not be burned.”