Ethereum price jumps as its London upgrade nears

The price of Ether (ETH) jumped to a two-week high and reached US$2,390, according to an update from CoinGecko last July 5. This price rally is attributed to the Ethereum 2.0’s London update that is set to be released this July.

On July 7, Ether increased again by 4.83% and moved up to US$2,398 after Ethereum’s community manager, Tim Beiko, announced that the client teams have already approved the upgrade.

Moreover, Ethereum is ensuring that there will be no serious objection to the project before its prospected release on August 4. The community manager encouraged users to keep an eye out for more updates since a developer meeting was held last July 9.

The London hard fork update is part of the roadmap that will lead to the implementation of Ethereum 2.0 as it transitions from a proof-of-work to a proof-of-stake consensus mechanism. Upon implementation, it will bring five Ethereum Improvement Protocols (EIP) with the fee market change for ETH 1.0 chain (EIP-1559) being the most notable one.

The new gas fee model that EIP-1559 will bring along will make the Ethereum blockchain deflationary. Additionally, a ‘base fee’ structure will be added after the London update to control the rapid surge in ETH gas fees. However, the concept of burning part of the gas fee caused outrage from miners, with several Twitter users expressing their ‘absolute disgust’ with how the Ethereum network managers treat miners.

One Twitter user even posted saying ‘We are necessary, we maintain this network secured and fast. We deserve our gains’. Despite the protest from miners, the idea was well-received by ETH investors and traders as well as DeFi users who have major transactions in the Ethereum blockchain.

The London Hardfork upgrade was first implemented in the testnets: Ropsten, Goerli and Rinkeby before it will be deployed in the mainnet. The test release for Rinkeby was already implemented last July 7 while the update for Ropsten and Goerli was released on June 24 and June 30 respectively. As for the deployment in the mainnet, Ethereum is yet to confirm an exact date.

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