The popular cryptocurrency analyst says a proposed Ethereum (ETH) upgrade will significantly increase the price of the second largest cryptocurrency.
Called by Pentoshi, the analyst said the launch of the Ethereum Improvement Proposal (EIP) 1559 will allow the ETH price to rise above $ 1000 next year. The master analyst used the following statements:
“EIP-1559 in 9 months. ETH is likely to be deflationary. The current issue is the same as BTC, 4% per year. ETH 2 can reduce this to 1.5%. A halving on its own without tags… ETH is required for everything. Gas. DeFi. Altcoins. Don’t Staking. Uniswap. Therefore, ETH may rise to $ 1,000 and above in 2021. ”
Will Configure Wage Mechanism
EIP-1559, originally proposed in 2018, is designed to substantially restructure the ETH network’s charge mechanism. With the EIP-1559 upgrade, all transactions will have a standard fee called the basic fee, which is the same for all users.
Vitalik Buterin, creator of Ethereum, says the new fee mechanism offers several benefits. “Simplicity of wallet development (no need for complex fee estimating strategies) and privacy (less fee selection means less opportunity to disclose information about yourself),” says Buterin.
The EIP-1559 will also have a deflation mechanism because Buterin offers two options where transaction fees are either burned or deposited into a long-term mining pool.
Crypto intelligence platform Messari announced last month that Ethereum fees significantly exceeded Bitcoin fees.
“Ethereum fees are higher than Bitcoin fees for 2 months. This is the longest series ever. ”