Ethereum Price Target: 35.000 USD
The deflationary character that has been introduced with the so-called London Upgrade (read here) receives a lot of attention, as it changes the way how transactions work on Ethereum.
Why? The number of Ether generated by the miners is not increasing as fast as before. This is because with each transaction a part of the fees due is destroyed/burned.
Deflationary Trend: London Upgrade
The term “burn” is based on the concept that the fees are named “ gas”. That is the equivalent of the substance used to burn in the real economy — quite simply.
Previously, miners received only a fixed amount (block reward) for their activity when they mined a block and successfully submitted it to the blockchain. But now they receive additional transaction fees, from the person who commissioned a transaction.
The price of a transaction depends on both the difficulty, network utilization, and the fluctuating price of gas.
However, quite crucially, the fees are not transferred to miners as before but are burned since the hard fork. This slows down the Ether supply: the inflation rate flattens out. If the block utilization increases due to an increased transaction volume, more base fees will be burned, which can sometimes exceed the additional compensation of…
