Ethereum has been making a lot of headlines recently, and the main reason is the coming of Ethereum 2.0 upgrade.
Not too long ago, we revealed that the hype for Ethereum 2.0, which is just around the corner has been growing at a rapid pace.
The coin’s price also saw big upwards movements these days, mirroring the success of the project.
A proposed Ethereum upgrade would boost the price of the coin
It’s been just revealed that a popular pseudonymous crypto analyst says a proposed Ethereum upgrade would significantly boost the price of the coin.
The analyst called Pentoshi said that 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.”
It’s also worth noting that first proposed back in 2018; the EIP-1559 is designed to significantly restructure the fee mechanism of the ETH network.
The EIP-1559 upgrade will make all transactions have a standard fee called a basefee, which is the same for all users.
Ethereum creator Vitalik Buterin explained the benefits of all this.
“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).”
There have been all kinds of optimistic predictions these days about the price of Ethereum and Bitcoin as well, especially since BTC hit $16k for the first time in three years.