Connect with us

Hi, what are you looking for?

ELEVENEWS

Ethereum

Crypto Analyst Predicts Ethereum Will Soar Above $1,000 Next Year if Fee Proposal Is Approved

A popular pseudonymous crypto analyst says a proposed Ethereum upgrade would significantly boost the price of the second-largest cryptocurrency.

The analyst, who goes by the name Pentoshi, says the launch of the Ethereum Improvement Proposal (EIP)-1559 would ensure the price of ETH moves above the $1,000 mark next year.

“EIP-1559 in 9 months. ETH has the possibility to become deflationary. Current issuance is 4% per year, same as BTC. ETH 2 will [be] bringing [issuance] down to 1.5%. A halving of its own just without the label. ETH is needed for everything. Gas. DeFi. Alts. Staking. Uniswap. $1,000+ in 2021.”

First proposed back in 2018, the EIP-1559 is designed to drastically restructure the fee mechanism of the ETH network. With the EIP-1559 upgrade, all transactions will have a standard fee called a basefee, which is the same for all users.

Ethereum creator Vitalik Buterin says the new fee mechanism offers a couple of benefits.

“Simplicity of wallet development (no/less need for complex fee estimation strategies). Privacy (less need to choose fees means less opportunity to reveal bits of info about yourself).”

The EIP-1559 would also have a deflationary mechanism as Buterin presents two options where transaction fees would either be burnt or deposited into a long-term mining pool.

ADVERTISEMENT

Crypto intelligence platform Messari revealed last month that Ethereum fees have significantly outpaced Bitcoin fees.

“Ethereum fees have been higher than Bitcoin fees for 2 months straight. It’s longest streak ever.”

Source: Messari/Twitter
News Source

Advertisement

Trending Post

Chainlink

ChainLink is basically very exciting.  Users have to state that it stirs the imagination and passions of the community in ways that other projects...

IOTA

Senseering offers an IOTA-based solution to create a marketplace for data that can be shared among partners. Senseering’s solution will be used in collaboration...

Ripple

Cryptocurrency investment is becoming a common trend. In the fourth quarter of the year, when investments are said to start doing well, how are...

VeChain

VeChain (VET), BTCMVMNT, and Team Zuby have joined forces to create a limited-edition merchandise collection dubbed “Take the Power Back.” The team says the...

Copyright © ELEVENEWS