ETH takes market dominance as London Fork upgrade triggers bullish trend

After the launch of the highly anticipated Ethereum London Fork on August 5, Ethereum was seen as dominant in the market. Its price spikes, especially since the start of 2021, have been far greater than those of the crypto market leaders Bitcoin.

Ethereum earns more than Bitcoin in the markets

The upgrade brings simplicity to the Ethereum network and significantly reduces the problems the network faces.

After the recent fork, Etherum has seen a steady rise in value and appears to dominate the market. As a rule, the coin has appreciated in value to reach over $ 2,835, its highest value over three months. Currently, the coin’s price is at the support level of $ 2,700 and the resistance of $ 2,900.

According to the coinmarketcap and coingecko charts, Ethereum has risen more than 3.4% in the past 24 hours. This increase is no more than the 5% of Bitcoin in the last 24 hours. Also, according to CMC, the current market dominance of Ethereum is around 19%, one second behind bitcoins which is 45%. So why is Ethereum dominant? Compared to bitcoin and other assets at the start of the year, Ethereum performs much better.

Bitcoin started the year at over $ 28,000 and the coin is currently worth $ 41,000. As a result, bitcoin has risen by around 40% since the start of the year. Ethereum, on the other hand, went from just $ 730 to around $ 2,700 on August 6. The increase in Etherum is approximately 250%; thus, Ethereum has performed better than bitcoin this year, proving to be dominant.

Market domination continues

Due to recent upgrades, it is safe to conclude that Ethereum will continue to dominate the crypto markets for weeks to come. One of the great benefits of the current upgrade is the supply reduction mechanism through coin engraving.

In just 3 hours after the upgrade, Ethereum had burned over $ 1.7 million in coins, the equivalent of around 600 ETH. Burning coins at such a high rate results in increased demand and ultimately soaring prices. While Ethereum is unlikely to continue burning coins at such a high rate, their continued burning process will help resolve the oversupply issue.

As supply continues to be more manageable, it is more likely that the coin will become more and more dominant in the markets. Bison Trails Protocol Specialist Victor Bunin said;

“Everyone should be watching how the next few weeks unfold and the emergence of financial models quantifying the impact of combustion on the ether supply, which could ultimately lead to price targets.”

London’s hard fork in the crypto world

Upgrading the protocol could have a huge impact on the entire crypto economy. Before upgrades, Ethereum-based tokens like Uniswap and Aave continually increased prices.

However, Delta exchange expert Pankaj Balani still says that Ethereum is connected to bitcoin, which means any future ETH model will still depend on the performance of bitcoins. Therefore, it is still early days to say how this upgrade will affect the general crypto market.

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