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OKEx Insights Crypto Market Daily NFT DeFi Ethereum

Ethereum’s London mainnet upgrade burns millions in ETH, sends price

2021.08.06 Adam James

The price of ETH has broken out in a big way following Ethereum’s successful mainnet upgrade and subsequent burning of coins.

The global cryptocurrency market capitalization is up nearly 3% over the past 24 hours, with ETH leading the charge following the successful implementation of its London mainnet upgrade. The foremost altcoin is up nearly 5% on the day, while BTC is lagging behind with a negligible 0.3% increase.

Ethereum-based decentralized-finance tokens are also experiencing strong gains, with UNI and AAVE up 8.4% and 14.9%, respectively. At the same time, Ethereum competitors — such as SOL — are seeing solid increases.

BTC is underperforming the wider cryptocurrency market as all eyes focus on Ethereum. Source: Coin360

Ethereum’s London upgrade burns $2 million in hours

Ethereum’s long-awaited London network upgrade has gone live and — as anticipated — is burning a large amount of ETH on a steady basis by removing a portion of the protocol’s transaction fees. In short, thanks to EIP-1559, the rate of inflation on the Ethereum network is now greatly reduced.

As of the time of this writing, nearly 800 ETH — worth more than $2 million — has already been burnt since going live earlier in the day. Importantly, this $2 million in burned ETH has not been rewarded to miners and is thus unable to be sold — effectively removing a certain amount of downward pressure from the historical norm.

Ethereum’s London upgrade has already burnt more than 800 ETH. Source: ultrasound.money

Top altcoin gainers and losers: XEC, AAVE lead large-caps

  • KP3R/USDT +66.13%
  • OM/USDT +40.24%
  • VRA/USDT +31.45%
  • MINA/USDT -9.20%
  • LAT/USDT -13.31%
  • EFI/USDT -23.78%

Altcoins with market capitalizations beneath $1 billion are dominating the leaderboards on OKEx today, per the exchange’s default time settings. Aside from the little-known XEC being up nearly 11%, AAVE is the top-performing large-cap altcoin after adding 9.54%.

AAVE is one of the top-performing major altcoins on OKEx today. Source: OKEx

BTC technical analysis: Taking a back seat to ETH

The price of BTC is trying to rally alongside ETH and Ethereum-based DeFi tokens, but resistance still sits overhead around 40,000 USDT. With mainstream media covering Ethereum’s mainnet upgrade and many traders looking to play ETH’s price action, BTC may struggle to gain much bullish traction in the immediate term.

OKEx’s BTC/USDT 4h chart — 8/05. Source: OKEx, TradingView

ETH technical analysis: New supply-and-demand dynamics

The price of ETH has broken out in a big way ahead of and after the implementation of London. However, sellers attempted to dump the leading altcoin immediately following the upgrade’s implementation — but buyers were quick to absorb and subsequently send the price higher.

Volatility is expected in the near term as traders take stock and come to terms with Ethereum’s new paradigm — but the supply-and-demand dynamics have certainly changed.

OKEx’s ETH/BTC 4h chart — 8/05. Source: OKEx, TradingView

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OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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