Ethereum has risen to its highest since June with the currency close to overtaking $2,700 in a mini bull run of sorts.
It rose from a low of $2,463 earlier today to just about $2,700 before slightly retracing, with it on the move but currently at $2,672 at the time of writing as can be seen above.
The ratio has also been in a bull run, up from 0.057 bitcoins per eth to 0.068, with it rising 3.56% against bitcoin just today.
A big reason for this rise may be the burnening, with EIP1559 to be activated in 20 hours according to etherscan’s estimates.
Around this time tomorrow, we’ll be seeing nice images of eth being burned by the block as the new burned base fee algorithm kicks in.
Capacity will also technically double as the base fee is set at a level that targets 50% network usage, with it making fee estimates a lot more predictable and thus it should increase the user convenience for defi dapps.
The launch of a new defi token by dYdX may also be contributing to this bullishness as some new holders may well convert them to eth.
But the burning is obviously the far bigger event as it changes eth’s crypto-economics to make the asset more scarce potentially even in absolute terms if more eth are burned in a block’s base fee than given to miners – or later stakers – in block rewards.
It will also reduce it relatively speaking with miners no longer receiving the fees in a block, the base fee, which instead will ‘vanish’ by being ‘burned’ or technically by being sent to the 0x00000 address – the network address to which no one has the private key and thus no one can access.
That means supply pressure from miners will reduce which should act as a havling of sorts for eth, and maybe more depending on network usage which determines just how much is burned in fees.
All this kicks-in within a few hours, and thus eth is gaining against bitcoin and against the dollar with it to be seen whether it can cross that $2,700 to head for potentially $3,200.