What Crypto Analysts Say About Ethereum Hard Fork

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Ether prices rose in digital asset markets on Thursday after the ‘London hard fork’ of the Ethereum blockchain went live, and cryptocurrency analysts are now weighing in on the impact of the upgrade. network.

At time of printing, Ether was trading at $ 2,802. The world’s second largest cryptocurrency by market cap is up more than $ 300 from its daily lows, gaining 4.83% in the past 24 hours.

Martin Gaspar, Research Analyst at CrossTower:

The apparent success of the upgrade is taken into account.

“The notion of Ethereum becoming a deflationary cryptocurrency in the future is now tangible, and the effects on Ethereum’s valuation could be profound.”

Related: Philipp Plein Becomes First Major Fashion Brand To Accept Crypto Payments

Alex Svanevik, co-founder and CEO of Nansen:

It will take some time, if not weeks, to see a real impact from the upgrade.

Currently, it is focusing on a metric that looks at the percentage of EIP 1559 transactions, which is currently very low.

“As wallets, bots, etc. begin to use EIP 1559 features, we’ll know more about how this upgrade affects Ethereum in the long run.”

Denis Vinokourov, head of research at Synergia Capital:

“Overall the reaction is more or less as expected. It is very rare for Ethereum to gain an immediate advantage after such network upgrades, although a bias tends to materialize over time.

These occasions are generally well documented before the event, given the transparent discussions on various forums and conferences, he said.

This is “unlike, for example, [Federal Reserve] meeting, where slight nuances regarding the language used can have a more pronounced impact on the reaction of different asset classes, ”Vinokourov said.

Laurent Kssis, Managing Director of Exchange Traded Products at 21Shares AG:

Kssis sees a possibility of a short term correction as the network stabilizes, before resuming an uptrend.

He said he couldn’t see a definite short-term trend, but a relative value exchange could be implemented between ether and bitcoin.

“With [non-fungible tokens] booming, we are witnessing a consolidation as demand remains strong in the [decentralized finance] segment.”

Alexandre Lores, analyst at Quantum Economics:

The story continues

The increased scarcity of ether will add longer-term value to both supply and demand factors.

“In the short term, that’s another reason to be bullish,” Lores said.

Lores also said bitcoin looked bullish on the 15-minute and 1-hour candle charts.

“I think that’s another supporting factor in the ETH rally; however, in this case it does not appear to be the dominant factor, ”he said.

Normally, bitcoin is the primary influencing factor, but in this case, it only adds fuel to the “bullish fire,” according to Lores.

Related: Market Wrap: Ethereum Hard Fork Rally Outperforms Bitcoin

Tom Salter, Digital Assets Analyst at ByteTree:

“This is Ethereum’s biggest upgrade in years. Part of me thinks Ethereum maximalists didn’t expect it to be implemented. Obviously, the hype has a role to play.

“Keep in mind that this increase took [ETH] at a relative 30 day high against BTC. That alone will give legs to this breakaway.

As for what’s next, Salter hopes that several debates will be settled within the Ethereum community: whether EIP 1559 will give Ethereum a deflationary offer, and whether the tips will be enough for the “greedy miners.”

Rick Bensignor, President of Bensignor Investment Strategies:

Bensignor attributes the rise in the price of ether after the London upgrade to a combination of theoretical optimism that comes from the “hard fork” (i.e. lower transaction costs with a slightly reduced supply. ).

He also said the rise is due to the fact that crypto traders tend to trade the news of the day, and “it’s not a sufficiently developed market to really know what the long-term fundamentals really are,” he said. declared Bensignor.

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