Will Ethereum’s London Hard Fork Cause Increase in Gas Fees?

Will Ethereum's London Hard Fork Cause Increase in Gas Fees?

With the launch of the Ethereum London Hard Fork, there was brief turbulence in the ETH supply. Specifically, the high burn rate led to a short-term increase in gas fees. This action resulted in about 800 deflationary blocks.

Ethereum Increase in Network Transaction Fees After London hard fork Launch 

The much anticipated London hard fork was a success. Just days after launch, the community has seen an increase in network transaction fees. However, this only took a few hours. Nevertheless, the burn rate has led to deflation.

On average, the ETH Burn Bot tweets about the number of ETH burned. It records the burning plan that went live with EIP-1559. This allows users to calculate the amount of ETH being burned.

In addition, these tweets also allow users to calculate the amount of ETH burned relative to time. In this way, they can determine the rate of deflation on the blockchain. Since ETH-Hodlers receive fewer and fewer rewards with this new proposal, it is important to keep track of all developments in the network.

For example, if the amount of ETH burned is higher than the amount of mining rewards, then deflationary blocks will be generated. This in turn led to a temporary reduction in the ETH offer. According to CoinGecko, the price of ETH at the time of writing was $3,230.25 and its market cap was $378,815,938,767.

Vitalik Buterin Says This will be the Last Delay for Ethereum 2.0

The London hard fork is a step towards achieving Ethereum 2.0. The Ethereum 2.0 release has long been ridiculed. However, it has been postponed repeatedly and is now the sixth year. Founder Vitalik Buterin said this will be the final delay.

The ETH price is currently showing a bullish signal. Prices are up 1.9% in the last hour, 3.9% in the last 24 hours, and 28.4% in the last 7 days. While this is a great rally for the cryptocurrency giant, some analysts are still skeptical of the massive bull market.

That’s not to say that ETH won’t have a large-scale bull market. It’s only likely that this won’t happen until after Ethereum 2.0 is fully withdrawn. Most investors are confident that ETH will hit $10,000 in the near future. Even so, this can take longer, just like the Ethereum 2.0 release.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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