Ethereum’s hard fork upgrade is complete: is this a ‘non-event’ or a ‘huge day’?

By: Jayson Derrick
Jayson Derrick
Jayson is the Lead News Editor at Invezz overseeing the team of reporters, analysts and strategic direction of news… read more.
on Aug 5, 2021
  • Ethereum's 'London hard fork' upgrade is now complete.
  • One crypto pro said this represents a 'non-event'.
  • Another argues this is a 'huge day' for ETH.

Ethereum’s (ETH/USD) much-anticipated “London hard fork” has been activated and introduces new and important changes to the largest cryptocurrency after Bitcoin (BTC/USD). Experts and analysts remain mixed as to what this will mean for ETH price moving forward.

A ‘non-event’

Delta Exchange CEO Pankaj Balani said in a statement obtained by Invezz that investors have mostly priced in the bull case for EIP-1559, the most notable of the five Ethereum Improvement Proposals. As such, ETH price will likely move in unison with BTC price in the near-term.

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If Bitcoin solidifies itself above the $40,000 level then Balani said he expects Ether to rally and test the $3,000 level. But if Bitcoin fails to find support at the $36,000 level we can expect “selling across the board,” including on Ether.

Over the long-term, the Ether ecosystem will continue to grow larger and become stickier, he said. Most notably, the percentage of staked ETH continues to rise, the DeFi activity remains encouraging and ETH is gaining greater traction among large investors. He concluded:

Given this ETH can outperform BTC in the medium to long term but for the next few quarters ETH should continue to exhibit strong correlation with BTC.

A ‘huge day’

Taking the other side of the debate is DeversiFi CFO Ross Middleton. He said in a statement sent to Invezz the EIP-1559 network upgrade represents a “huge day” for the Ethereum cryptocurrency ecosystem. What the change means is that every transaction, NFT purchase, or loan on the network will result in ETH being burned out of existence.

Stock investors would appreciate the analogy that this is equivalent to Apple Inc (NASDAQ: AAPL) buying back a portion of a share each and every time someone either bought something from the Apple App store or made an in-app purchase.

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