Related Reading | Ethereum EIP-3675 For ETH 2.0 Upgrade Launches On GitHub
Move To Proof Of Stake
The move of the Ethereum network from proof of work to proof of stake has been a hot topic in the crypto space since the project was announced. Although the project continues to require more time to complete than was initially speculated by Ethereum founder Vitalik Buterin. The move has had numerous delays, most of which are attributed to personnel working on the upgrade and not technical problems, according to the founder.ETH price tests $2,300 resistance point | Source:Ethereum still currently operates on a proof of work mechanism, but the move to proof of stake would see the network requiring less electricity to mine coins and making the hassle of mining much less than it currently is. The reduced electricity consumption will address the environmental pollution problem of mining, which has long been a bone of contention in the mining industry.
Recently, the EIP-3675 was formalized as an improvement proposal, which sets the stage for “The Merge.” This comes just before the scheduled London Hard Fork that is meant to take place about a week from now on August 4th. The hard fork will see gas fees being burned as the current system is switched out for a new and better one.
Ethereum Price Reactions
The price of Ethereum continues to see increasing improvement as ETH 2.0 breaks the 200,000 validator milestone. Over the weekend, the price of Ethereum grew over 10% as the market witnessed a tremendous run. Giving ETH a much-needed momentum push to break the $2,000 price level and continue an upwards movement.Related Reading | Ethereum Price Could Go Up Over 860% To Break $10,000, Crypto Analyst
More validators are expected to hop onto the Ethereum network. And as the amount of ETH mined in each block is reduced due to the fee burn structure of the ETH 2.0 upgrade, the amount of forecasted circulating ETH will be less. Hence the new deflationary nature of the network will introduce scarcity, thereby increasing the value of the coins mined. Ethereum is now comfortably trading above $2,000 and continues to see upward momentum as the price continues to test the $2,300 resistance point.Featured image from Blockchain News, chart from TradingView.com