Ethereum’s price rallied ahead of EIP-1559, but is a correction on the way?
The last 14-day period has seen ETH incur gains of a whopping 35%
- The London Hardfork is scheduled to go live on the Ethereum Network on Aug 4.
- NFT adoption has continued to increase globally over the last few months despite market volatility.
- Ethereum has continued to remain highly correlated with Bitcoin over the last 30-day stretch.
Ethereum has been on an absolute tear over the last week, booking profits worth nearly 15% in the process. In this regard, the altcoin scaled up to a relative high of AU $3,675 before correcting to its current levels. At press time, ETH is trading at AU $3,458.
In terms of what the future might hold for Ethereum, a number of experts believe that the continued delay of ETH 2.0 might be keeping the digital asset from reaching its true financial potential. Not only that, even the currency's futures data seems to suggest that ETH may struggle to hit the AU $4,000 mark anytime soon.
That being said, after being released across various testnets, the highly anticipated London Hardfork is all set to go live on the Ethereum network on August 4. As a quick refresher, the aforementioned upgrade seeks to make gas fee-related calculations more accurate as well as reduce the currency's existing throughput issues.
NFTs continue to garner more traction
There is no denying that mainstream support for non-fungible tokens (NFTs) has continued to grow across the globe in recent months, as is best highlighted by the fact that a growing list of high profile celebrities seem to be getting on board the NFT bandwagon with each passing day. For example, rapper and producer Jay Z recently changed his Twitter profile picture to an NFT CryptoPunk.
Not only that, even in emerging markets such as India, where it is estimated that 15 million citizens hold around US $6.6 billion worth of crypto, an increasing number of musicians and visual artists have been quick to adopt NFTs by selling pieces of 2D, 3D artwork as well as albums using these novel crypto offerings. In fact, earlier this year, an Indian musician was able to sell an NFT of his demos for US $200,000.
The last month or so has seen Ethereum closely follow Bitcoin's price action — with a correlation factor of nearly 90%. Therefore, it will be interesting to see what sort of market action emerges from here on end, especially with Bitcoin's value gaining solid momentum once again.
Disclosure: The author owns a range of cryptocurrencies at the time of writing