Ethereum (ETH-USD) price all-time highs follow reduced gas costs enabled by Berlin update on the ETH network
The Berlin hard fork, named in honor of Germany’s capital that hosted the first Ethereum DevCon, was initially scheduled for summer 2020 but was pushed back due to centralization concerns around the Geth client on which most Ethereum nodes operate.
The explosive growth in the cryptocurrency space seen over the past year would have been near impossible without the Ethereum network; which saw the price of Ether (ETH) break out to a new all-time high on April 27 following the “Berlin” upgrade on April 15. Meanwhile, on April 24th, Bitcoin (BTC) dipped to $46,000 before springing back above $54,000. All while Ether gained ground on the top cryptocurrency and barely dipped itself.
Signs of an impending breakout have been appearing for some time, as pointed out by Raoul Pal, founder, and CEO of Real Vision Group.
Transaction fees concerns are being dealed with
Struggles with high transaction costs and/or slower confirmation times have weighed heavily on Ether’s price recently. The excitement around DeFi and NFTs has led to skyrocketing activity on the network. With the top DeFi and NFT protocols operating on Ethereum, the uptick in activity has sent Ether appreciating faster than Bitcoin.
The further implementation of ETH 2.0 in the coming months not only intends to scale the network to alleviate congestion. It also aims to introduce technical changes (EIP-1559) that realign the economic incentives of the Ethereum network. Instead of miners validating the transactions, it will be up to ETH holders to secure the network.
While Bitcoin could be considered a store of value like gold. Meanwhile, ETH is more like oil, it fuels a protocol on top of which applications can be built. And the number of those applications is increasing exponentially. Some of the world’s biggest companies are building on ETH protocol. Those include video game giant Ubisoft and Dutch bank ING and American broker TD Ameritrade.