An “explosive growth” due to an Ethereum network change is on the horizon. This upgrade limits the amount of Ether tokens in existence, experts reported. Ethereum blockchain developers approved the changes Friday and should be operational by July or August.
Known as EIP-1559 in Ethereum parlance, the move will recondition the Ethereum system. Users will now be able to send a base transaction fee to the same network. This action will lead to the destruction of Ether tokens, ultimately reducing the number of outstanding tokens.
Limiting Ether means a higher a price
Cryptocurrency analysts support this move. By limiting the existence of Ether tokens, like Bitcoin, can result in pressure on the price of the digital token. Therefore, with the recent institutional interest in digital currencies, the price could sky-rocket.
“What is most exciting to cryptocurrency traders is: now Ethereum will reduce the amount of outstanding Ether by destroying some of the tokens every time it’s used to process some transactions,” Edward Moya, chief market analyst at currency firm Oanda told Insider.
