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Ethereum’s London Upgrade Could Boost Its Price Through Burns

  • Software will reduce Ether circulation with each transaction
  • Fewer coins could mean higher prices: Multicoin Capital
Bitcoin And Other Cryptocurrencies Online As Its Stocks Soar
Photographer: Tomohiro Ohsumi/Bloomberg
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Ethereum -- the second-biggest cryptocurrency and one that’s home to many new financial applications -- is getting a face-lift, one that could potentially boost the coin’s price.

Ethereum will soon undergo a major software upgrade, code named London, that will trim the pace at which the supply of Ether tokens grows. A change called EIP-1559 will split up the roughly 13,000 new Ethers issued each day for miner payment “gas fees” into three parts. One of these, the minimal or base fee that users pay to process transactions, will now be removed from circulation in a process known as burning.