ETH Nears $2,500 as Ethereum Network’s Berlin Hard Fork Goes Live

Ether is enjoying a rush of bulls as the price surged to make an all-time high at $2,486.

The second-largest cryptocurrency with a market cap of $275 billion has rallied 235% this year so far.

Besides the price action, which gained momentum in late March, today, the network is also celebrating the Berlin hard fork going live. The hard-fork took place at block number 12,244,000.

This upgrade will pave the way for Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS).

Named after the host city of the Devcon convention, this network upgrade brings several changes to the Ethereum software, which means anyone running the node must update their software client.

Berlin hard fork is upgrading four Ethereum Investment Proposals (EIPs), aimed to bring the transaction fees down by optimizing the usage of gas fees.

This includes EIP-2565 which lowers the gas costs of the proposal to bring them in line with the cost of executing other operations. EIP-2718 introduces a new transaction type to enable easier support for multiple transaction types.

EIP-2929 raises the gas costs to limit DoS attacks and speed up processing times, while EIP-2930 helps reduce the risk of breaking smart contracts and mitigate some of the gas cost increases that will occur due to the introduction of EIP-2929.

The much anticipated and controversial EIP-1559 is not part of this upgrade but will be included in the London upgrade in July that will burn the fees paid in Ether, making it a deflationary asset and creating a positive feedback loop for ETH prices.

Fees on the Ethereum network are the biggest talking point which continues to gain momentum ever since DeFi summer. Since last week, however, the network has been enjoying low fees despite the increased usage and market volatility, which, as we reported, has been due to the increased use of Flashbots by miners.

“12 mining pools accounting for over 58% of ethereum network hashrate are mining on flashbots,” said the organization in its transparency report for March 2021.

Berlin upgrade won't be making any drastic improvements in reducing congestion and fees, but it’s a step towards that end goal.

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