The Ethereum transaction fee mechanism will undergo substantial modifications as a result of the London upgrade which has been a point of contention due to the network’s congestion, he great majority of decentralized finance (DeFi) and non-fungible token (NFT) projects have been hosted on the platform. — two industries that have exponentially grown in the last year.

Since its inception in 2015, the Ethereum blockchain has been considerably more ambitious than Bitcoin, which is primarily employed as a store of wealth. The blockchain, according to its proponents, has the potential to be the future internet’s backbone.

The London Upgrade

Ethereum is a smart-contract platform, and being the pioneer in this sector, it provides the foundation for the bulk of decentralized apps and DeFi.

However, Ethereum has had difficulty reaching critical mass in the DeFi area, and mainstream acceptance is lacking owing to its bandwidth, or capacity to expand, resulting in expensive transaction costs.

The price of gas might change at any time, based on the network’s demand. The London hard fork is a significant step forward in addressing this problem by making transaction costs more predictable.

Generally, Ethereum’s London update — also known as EIP 1559 — would restrict the pace of inflation of gas fees and assist the decreasing of the transaction fee volatility, which will help attract more users into the ecosystem.

According to many, EIP 1559 may mean that Ethereum might be added to the list of rare assets conversation, which is presently one of the major justifications for using Bitcoin as an inflation hedge owing to its restricted supply of 21 million BTC. Ethereum currently has no set limit supply, making it less appropriate as a store of wealth. As of this writing, Ethereum’s circulating supply is at 116,431,347 ETH.

Ether is used to pay Ethereum’s basic fees. “Burning” the basic fee effectively destroys the Ether that was utilized, lowering the overall supply. Users pay a second payment — known as a “tip” — in exchange for speedier transactions. As in the offline world, the larger the tip, the more a user’s transaction is prioritized on the blockchain.

Speed of Scaling

Many of the problems with the Ethereum blockchain stem from the network’s inability to grow to greater speeds. Ethereum can only process about 30 transactions per second in its present configuration. The scalability issue will be addressed by the London hard fork upgrade.

Limits must be raised in order for Ethereum to deliver on its promise, which is why the Ethereum Co-development team has been working on ETH 2 as a method to scale Ethereum’s capacity, lowering the cost of performing transactions on the network.

This update is important for Ethereum’s cost and performance concerns, as well as other scaling initiatives in sharding. People might see the network speed up to about 100,000 transactions per second when the blockchain ultimately moves to 2.0, thanks to sharding and other techniques.

Price History

In December 2017, Ethereum performed very well, breaking over the $500 barrier level and moving to $730 by mid-December, eventually reaching $900 by the end of the month. Continuing its run, it hit $1000 in January 2018, only to plummet to a low of $640 in the first week of February, before recovering.

Ethereum, like every other cryptocurrency, has had its ups and downs, but has yet to break above the $1000 barrier since January 2018. The all-time high for ETH is $1400, which occurred in 2017. Despite the rise in Bitcoin prices, Ethereum is rebounding slowly. For the past two years, it hasn’t shown any movement.

The all-time high for ETH is $1400, which occurred in 2017. Despite the rise in Bitcoin prices, Ethereum is rebounding slowly. It didn’t change much for the previous two years, but in July 2020, it increased by 100%, going from $200 to $400 in just fifteen days.

Ethereum Price Prediction

ETH reached a new all-time high of $2,072 on Friday, April 2nd, 2021. Ethereum currently has a 12.5% market share of the overall cryptocurrency market. The Ethereum 2.0 genesis stakers have increased the number of Ethereum nodes to 11,259, surpassing the number of nodes Bitcoin had in this year twice. In the previous two weeks, the number of nodes of Ethereum on the network have increased by more than 50%.

2021 Price Prediction

With the growth of DeFi, the network has been strained beyond its maximum, and an update named Ethereum 2.0 was slated for November 2020. The updated version is anticipated to boost the network’s scalability to 1,00,000 transactions per second, converting the blockchain from POW to POS.

The network is quite popular, with several projects developed on it; if progress is sustained, users may expect ETH to rise to 604.007 USD.

2022 Price Prediction

Ethereum is projected to have a slew of collaborations and integrations planned for 2022, which might help to enhance Ethereum’s market value. By 2022, ETH may reach $2500, which is a stretch but still a possibility.

Conclusion

Ethereum, according to market analysts and enthusiasts, has a good chance of increasing in value. Thanks to the latest upgrade Ethereum 2.0, Ethereum has a fantastic roadmap planned for 2021 and beyond.

Ethereum has benefited from being one of the most widely utilized blockchain networks in the crypto sector, thanks to the emergence of non-fungible tokens (NFTs) and decentralized finance (DeFi) during the last year. Despite certain drawbacks, such as hefty transaction fees, the price of Ether has more than doubled since the beginning of the year.

As the network’s demand rose, gas costs reached all-time highs, while the price of ETH gradually increased. The London upgrade will help to alleviate some of Ethereum’s high transaction fees, but network congestion will likely persist until scalability is addressed.

In a nutshell, it appears like Ethereum and its supporters have nothing but blue skies ahead of them. There will undoubtedly be a price increase following the London upgrade, and more individuals will be drawn to the revenues it generates.