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The London hard fork is set to be activated on August 4 approximately between 13:00 UTC and 17:00 UTC. What does this mean and what impact will it have on the ETH price? According to Denis Voskvitsov, Exantech CEO, the main idea of the upgrade is the new type of transactions.
"For users and many developers, the essence of the upgrade boils down to integrating the next version of transactions in which the fees and the transaction price depend on the network load. If the network is loaded, then the fees will decrease, and if they are few, then they will grow," Voskvitsov explained.
Thus, both cryptocurrency miners and users are interested in the upgrade. At the same time, some of these fees will not go to the miners, but simply burned. This is done to implement the deflationary model. Old transactions will work as before, however, everyone should switch to the new ones in the foreseeable future.
It is worth noting that Ethereum is now setting standards for the altcoin market, being a kind of benchmark for them.
What will happen to the price of ether?
Ether is likely to have already realized its potential during this local run based on the approaching hard fork. It is possible that the token will grow slightly, but when the fork happens, it may face selling pressure. In the longer term, a strong growth in ETH is not excluded, and part of the capital can be transferred from bitcoin (EXANTE: Bitcoin) to it.
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