INSUBCONTINENT EXCLUSIVE:
Ethereum Vs Dollar Rate: Ether was last up 2.6 per cent at $2,796.Ethereum, the second-largest blockchain network, went through a major
software upgrade on Thursday, which is expected to stabilize transaction fees and reduce supply of the ether token
After initially trading lower going into the upgrade, ether regained momentum, last up 2.6 per cent at $2,796.The adjustment, called
Ethereum Improvement Proposal (EIP) 1559, changes the way transactions are processed on Ethereum by providing clear pricing on transaction
fees in ether paid to miners to validate transactions and "burning" a small amount of those tokens
The burned tokens will be permanently taken out of circulation.Following the upgrade, 539.29 ether tokens were "burned" by late morning in
New York, according to ultrasound money, a website that tracks ether burning and supply.In token burning, tokens are sent to specialized
addresses that have unobtainable private keys
Without access to a private key, no one can use the tokens, putting them outside the circulating supply.By reducing supply, the tokens that
remain in circulation become rarer and more valuable.EIP 1559 is part of a batch of software upgrades called London
Thursday's Ethereum event is called a London hard fork, which means miners or developers have to download London to remain connected to
the network.Market participants have said EIP 1559's activation should raise the price of ether as the move will cut its supply
Ether initially weakened going into the software adjustment and after, but has since recovered."Everyone should watch as the next few weeks
unfold and financial models emerge quantifying the impact of the burning on the supply of ether, which may ultimately lead to price
targets," said Viktor Bunin, protocol specialist at infrastructure platform Bison Trails."The new ether supply dynamics may spark a new
virtuous cycle where increased price leads to greater adoption and vice versa
The more users and developers that enter the industry, the faster we can grow the crypto-economy."Pankaj Balani, chief executive at
derivatives trading platform Delta Exchange, believes that for now, even with the London fork, ether's price remains correlated with
"If bitcoin reclaims $40,000 and manages to hold that then we can see Ether rally further and test the $3,000 mark," he said.Balani remained
bullish on ether in the medium to long term as the Ethereum network grows with all the applications on it
He expects ether to eventually outperform bitcoin over a longer time horizon
