Here’s everything you need to know about the upcoming Ethereum London upgrade

  • London upgrade is ready for activation, set to go live between August 3-5.
  • EIP 1559 protocol is included, fee market change for ETH 1.0 will be implemented.
  • Difficulty bomb delay pushed to December 2021. 

The Ethereum Foundation announced on their blog that testnet deployment is successful, and the London upgrade will go live on the mainnet at block 12965000. The event is estimated to occur between August 3-5, 2021.

London upgrade ready to be activated on Ethereum mainnet 

The following Ethereum Improvement Proposals (EIPs) are included:

  • EIP-1559: Fee market change for ETH 1.0 chain
  • EIP-3198: BASEFEE opcode
  • EIP-3529: Reduction in refunds
  • EIP-3541: Reject new contracts starting with the 0xEF byte
  • EIP-3554: Difficulty Bomb Delay to December 1st, 2021

EIP 1559 is one of the most highly anticipated protocols since it will introduce a “base fee” in blocks mined on the ETH 1.0 network. The gas price that the Ethereum network accepts will be based on the demand, and it will be easier for users to estimate the right fee for their transaction. 

Additionally, EIP-1559 allows users to specify the maximum fee they are willing to pay and the amount they are willing to send to the miner. If there is a difference between the maximum and the actual fee, the user gets a refund. 

Part of the transaction fees is set to be burned, and a large part of the community is looking forward to burning ether. It is viewed as a critical improvement over the economics of the Ethereum network. Ethereum enthusiasts are also eagerly awaiting the ‘merge’ or the shift from Proof of Work (PoW) to Proof of stake (PoS) as the next critical step towards Ethereum 2.0. 

EIP 3554 delayed the ice age to December 1, 2021

Ethereum’s difficulty bomb, also known as the ice age, is the mechanism through which the network will “freeze” mining and transition to PoS. The transition is not ready yet, and for the fourth time, the community has to wait until December 1, 2021. It is expected that the merge will go live in December, unlike the three previous instances. 

The Metropolis (EIP 649), Constantinople (EIP 1234) and Muir Glacier (EIP 2384) are the three protocols that delay the ice age before EIP 3554. These delays have proven to belong. However, developers have opted for a relatively shorter delay this time around. 

The community is largely optimistic about the remaining protocols going live in the update. This brings Ethereum one step closer to mass adoption and deflation. 

Ethereum may never become ultrasound money until supply remains malleable

Ultrasound money is a term originally used by Justin Drake, an Ethereum researcher. He argued that if Bitcoin is sound money based on its supply cap, Ethereum must be ‘ultrasound money.’ This argument is based on the potential decrease in supply after EIP-1559 goes live and the eth1<>eth2 merge is implemented.

When crypto enthusiasts use the term Ultrasound money, it implies that Ethereum is money. Currently, it is far too volatile to replace the existing fiat currencies. Even if the community uses ETH as a medium of exchange (MoE), it is much more likely that stable money built using ETH as collateral will be adopted at a much faster rate. 

On a broader scale, the narrative of sound money that applies to Bitcoin may not apply to Ethereum at all, since as of now, Ethereum does not have a hard cap. ETH has a much broader use case with DeFi platforms and expansive NFT projects. Decentralized finance. The altcoin circulates more frequently than Bitcoin, and about 68% of its supply (vs. 46% for Bitcoin) is currently in circulation. 

When Ethereum was launched in 2015, 72 million ether was created. However, there is no cap on the number of ether outstanding. The narrative that ether is meant to be sound money needs more validity through a fixed supply. 

Until the supply remains malleable, there is no way to ascertain if burning part of transaction fees or the merge will lead ETH to be used as money. ETH continues to be an ideal collateral asset due to its large market capitalization (economic bandwidth) and liquidity, but the altcoin is far from becoming ultra sound money. 

Anthony Sassano, the founder of The Daily Gwei, has been an earnest proponent of ETH as a store of value and decentralized asset. In his recent tweet, Sassano explained that the ultrasound money had caused a divide in the community, and he considers it a meme.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bulls on winning streak pushing for more

Bitcoin price jumped this week after a shift in sentiment on Thursday when global equities went back in the green and investors favored riskier assets like cryptocurrencies. 

More Bitcoin News

Binance support for Polkadot parachain auctions could send DOT to new all-time high

At the Sub0 Conference representatives of Parity Technologies, DOT founders Gavin Wood and Robert Habermeier, confirmed that Polkadot is now ready to implement parachains, auctions and crowd loans on its blockchain network. 

More Polkadot News

XRP price awaits for volume to skyrocket to $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple bulls take control.

More Ripple News

Shiba Inu whales buy the dip after SHIB loses $600 million in market cap

Shiba Inu concluded a massive rally, and SHIB price plunged on October 14. Proponents were awaiting a Dogecoin flippening, however, SHIB dropped to 14th rank by market capitalization soon after. 

More Shiba Inu News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast