Ether near two-month high ahead of major protocol change
HONG KONG, Aug 5 (Reuters) - Ether ETH=BTSP held near two-month highs on Thursday ahead of a major adjustment to its underlying ethereum blockchain that would alter the way transactions are processed.
The revamp is anticipated to go live on Thursday at approximately 1200 GMT, according to market players. Technically, the upgrade will occur when the 12,965,000th block on the blockchain has been verified.
Ether, the world's second-largest cryptocurrency, fell 0.5% on Thursday, but has risen about 18% this week and is at its highest level since early June, in the aftermath of May's crypto market plunge.
The ethereum network underpins a range of projects in the crypto world including non fungible tokens (NFTs) - a crypto asset, representing an intangible digital item such as an image, video, or in-game item - as well many decentralised finance (DeFi) applications.
The upgrade, known as the Ethereum Improvement Proposal (EIP) 1559, will alter the way transactions are processed and provide clearer pricing for them.
It will also reduce the supply of the ether token and is likely to sharply boost its price.
Several large exchanges including Binance and OKEx have said they will suspend deposits and withdrawals of ether and ether-based assets around the time of the adjustment.
They said this was necessary to reduce the trading risks brought about by price volatility and to maintain the safety of user funds.
Reporting by Alun John; Editing by Sam Holmes
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.