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Cryptocurrency experts from Footprint Analytics have commented on their own annual report on Ethereum cryptocurrency. They talked about their vision of what is happening around the largest smart contract platform.
Experts said that the London update, which launched the ETH coin burning mechanism, had a key impact on the development of the project’s ecosystem. The update became critical, as it affected all network participants, including developers and miners, and ending with ordinary token holders (holders of digital assets).
Experts said the update enabled the virtual currency to continue to rise in value, making it deflationary against the rest. As of the last day of 2021, 1,317,700 ETH ($ 4.28 billion) were destroyed. According to statistics, 6.22 ETH is burned every minute.
According to analysts, a stable base rate for gas charges plays an important role in the development of the project, as it attracted the interest of new users. More and more users began to choose EIP-1559 as their transaction type.
The move from proof of work (PoW) to proof of stake (PoS) is also on track, according to Footprint Analytics. The new mechanism ensures that miners receive more stable income. The main Ethereum network is expected to complete its merger with the Beacon chain in full this year. The algorithm will significantly increase the network throughput up to 100 thousand transactions per second, as well as reduce the level of power consumption.
According to experts, these factors should positively affect the growth of the ecosystem and the value of Ethereum. Analysts have suggested that the number of projects in the decentralized finance (DeFi) sector will also increase.
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