After the release of the London update and the activation of the token burning mechanism, the altcoin price for the first time since mid-May exceeded $ 3 thousand. Experts explained why the asset may continue to rise in price in the coming year.
Over the month, Ethereum has risen in price by 88% and for the first time since mid-May reached $ 3.2 thousand.
The rapid growth of altcoin occurred after the release of the London update on August 5, which was another step towards protocol 2.0.
Hardfork has completely changed the mechanism for calculating transactions. Some of the commissions that miners previously received as a reward are now burned.
According to the service ultrasound.money, which tracks the burning of coins on the Ethereum network, more than 27 thousand coins ($ 87 million) were destroyed as of 11:00 GMT on August 11.
Burning is the destruction of a certain number of tokens to reduce their number in circulation.
This method is used to combat inflation and increase the value of cryptocurrencies.
All coin burning operations are recorded on the blockchain as a transaction, so anyone can verify that the coins have been destroyed.
experts explained how the activation of the London update will affect the price of Ethereum in the near future.
Technological development
Prospects for Ethereum appear positive against the backdrop of its technological development, says lead analyst at 8848 Invest Viktor Pershikov.
In Pershikov opinion, it cannot yet be said that after the London update, the Ethereum blockchain has become scalable, since transaction fees have not significantly decreased.
“It is now obvious that the movement in the market is set by the DeFi platforms and gaming, while bitcoin and its investors are simply following the market sentiment,” said Pershikov.
In this regard, the expert recommended not to focus on the prospects of bitcoin when predicting the price of Ethereum.
According to Pershikov, the situation will change in the coming year, and the mood and willingness of investors to buy bitcoin will depend on what levels Ethereum reaches.
Growth to the highs
Already this year, Ethereum has every chance of reaching a new all-time high, says a leading analyst at 8848 Invest.
According to Pershikov forecast, in this case, in the spring of 2022, altcoin may reach the level of $ 5 thousand.
Sergey Zhdanov, CEO of the EXMO crypto exchange, is more positive about the prospects for Ethereum and believes that by the end of this year the digital coin may rise to $ 8,000. …
“The London hard fork will be a trigger for growth. It is difficult to say what level the coin will reach, but Ethereum has the potential to increase its value to the level of $ 10,000, ”added Artem Deev, head of the analytical department at AMarkets.
