London Hard Fork is affecting Ether’s prices already, but gas fees stabilisation will take longer – Business Insider India

London Hard Fork is affecting Ether’s prices already, but gas fees stabilisation will take longer – Business Insider India

  • The Ethereum-based cryptocurrency Ether’s prices have improved substantially, but gas fees — the amount charged to conduct a transaction — will take longer to stabilise.
  • Ethereum’s average gas fee was pegged at 41 Gwei at 1:45 pm IST on August 12.
  • The network has burned over 31,000 ETH in the seven days following the London Hard Fork update.

Ethereum’s London Hard Fork update, which went live on August 5, is said to be the biggest change to the world’s second most valuable cryptocurrency so far.

The update is expected to reduce gas fees — or transaction fees — on the Ethereum network, a problem that has plagued the platform since its inception. It does this by burning most of the gas fees involved in transactions and hence taking them out of the active circulation.

TOP VIDEOS FOR YOU

The computation required for authenticating Ethereum transactions is called gas, and the fee required for these transactions is called gas fees.

Advertisement

Burning gas fees also limit the supply of Ether, the cryptocurrency that facilitates the Ethereum network, making the available tokens more valuable.

According to Etherchain’s burn tracker and ultrasound.money, over 31,000 Ether tokens have already been burned, at a rate of 2.51 ETH per minute.

Gwei is a smaller denomination of currency on the Ethereum network, which is used to determine the gas price. And, as of 12 August, at 1:08 pm Indian Standard
Source…