Why Ethereum’s price could surge very soon

crypto

In a move that could trigger bigger gains in the price of Ether, Ethereum blockchain developers have approved one of the biggest changes to the network since its inception in 2015.

The move will reduce the amount of outstanding Ether by destroying some of the tokens every time it’s used to fuel transactions on the world’s most-used blockchain.

Known as EIP 1559, the change solves a current problem: Ethereum users can only estimate how much Ether will be needed for transactions to be processed.

EIP 1559, which will become part of an upgrade in July or August, will embed an average price into the network itself.

The reduced supply of Ether will likely lead to rising prices as demand for the coins increases, Eric Turner, director of research at Messari, a cryptocurrency analytics firm, says.

Ether has seen an already incredible price gain in the past 12 months, along with Bitcoin and other digital assets.

Ether has risen about 560% in the past year, while Bitcoin is up about 430%, according to data compiled by Bloomberg.

Unlike Ether, Bitcoin has had since its start in 2009 a fixed supply of 21 million coins that will ever be created, a difference has led critics of Ethereum to say it shouldn’t be viewed as a similar digital currency as Bitcoin.

The proposal also will change a strange feature in Ethereum that no one really saw coming.

Users can now pay an Ethereum miner to process their transaction with a credit card or another cryptocurrency.

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