Photo by Nick Chong on Unsplash.

The cryptocurrency Ethereum (ETH-X) could be headed for another sharp rise in price.

What Happened

Ethereum's blockchain developers have agreed to move ahead on an update that would result in a reduction of the total number of Ether tokens in use, Bloomberg reported. 

The limiting of supply probably will drive prices up even more for Ethereum, which has already seen skyrocketing performance. It is up about 560% in the past 12 months, compared to 430% for Bitcoin (BITCOMP), according to Bloomberg. 

Coming This Summer

The update, expected to arrive this summer, is aimed at addressing an issue with Ethereum where users have to guess at how many tokens are needed for a transaction. Some outstanding Ether tokens will be destroyed when the cryptocurrency is used in transactions on Ethereum's blockchain. 

Ethereum is trading near $1,670 today, up 4.46% over the last 24 hours, according to CoinDesk.