Ethereum has recently been on a sharp rise as the “London Hard Fork”, a part of the Ethereum 2.0 roadmap scheduled to happen on either 4th or 5th this month, approaches. A hard fork aims to increase the efficiency through program updates.
The London hard fork burns the basic fee and pays only the priority fee to miners in accordance with 'EIP-1559', which divides the gas fee into a basic fee and a priority fee. In other words, by providing appropriate gas cost information, competition between users would be prevented, creating a convenient environment for investors.
At the same time, interest in Ethereum 2.0 is increasing. Ethereum 2.0 aims to introduce a proof-of-stake (PoS) consensus mechanism. The foundation predicted that the proof-of-stake method could reduce power consumption by 99.95% compared to the existing proof-of-work (PoW). The network 'Beacon Chain', which currently implements the proof-of-stake method, was launched at the end of last year, and is expected to merge with the Ethereum main network by 22.
According to Bloomberg News, the London Hard Fork will reduce the annual supply of Ethereum by about 4% and drive up the price.