Ethereum blockchain developers on Friday approved the reduction of the amount of outstanding Ether which could prompt a surge in the cryptocurrency’s price, according to Bloomberg.
- Known as EIP 1559, the move will destroy some of the token every time it’s used to fuel transactions. It is part of an upgrade in July or August.
- The shift will embed an average price into the ether network and solve issues of having users to guess how much is needed for transactions.
- The change will also make Ether the only way to pay for transactions on the network. At present, users can process transactions via credit card or another cryptocurrency.
- Analysts expect prices to rise as demand for coins increases. Supply of Ether was previously theoretically infinite.
- Ether has jumped 560% in the past year versus Bitcoin’s 430% increase.