Ether(ETH), the second-largest cryptocurrency by market cap has seen a key on-chain trend reversal as ETH saw a net inflow of funds for the first time since April. On the other hand for Bitcoin, the tide has reversed and the top cryptocurrency registered a net outflow of funds. The trend reversal for ETH is being attributed to the upcoming EIP-1559 upgrade scheduled to be updated in the upcoming London hardfork.
The net inflow of funds in Ethereum suggests more traders are buying ETH at the moment. Analysts also beleive EIP-1559 could be driving the current sentiment.
The upgrade promises to resolve the gas fee crisis on Ethereum that has plagued the network at the peak of the bull run. The upgrade would make the transaction cost more stable and burn gas fees with each transaction. If successful, the upgrade could make ETH a deflationary asset where supply decreases over time.
The London hard fork’s first testnet Ropsten went live last week while the second testnet Goerli will go live today followed by Rinkeby testnet on July 7. The net inflow of funds for Ether could be because of the same.
