Supply drop leads Ether price to new record high

Ether Supply

Analysts are expecting supply drop for Ether, and investors are expecting the world’s second biggest cryptocurrency to hit new all-time highs. And that’s exactly what is happening.

Ether has rallied to a new lifetime high on Thursday on speculation that an impending blockchain upgrade might result in a drop in supply. The native cryptocurrency of Ethereum blockchain rose to a record high of $2621 during early morning trading hours in the United States.

This was enough to topple the value of $2,546 reached on April 16.

The blockchain recently had a hard fork go live earlier this month, in the form or Berlin.

But another one is coming in the form of London that will see Ether become a deflationary asset. This feature will reduce the coin supply and have a corresponding effect on the price, creating an attraction point for buyers.

The EIP 1559 upgrade is the one you are looking for, and this overhaul is greenlit for July.

A large majority of Ethereum miners are against the proposal, for it is all set to bring the most significant and contentious alterations to the Ethereum blockchain in recent memory.

Ether has been on a tear as of late, outperforming Bitcoin by a wide margin. Ether has gained 36% this month, while Bitcoin is down about 8% due to reasons of its own. And analysts believe that this outperformance from the second biggest coin could continue in the near term.

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