Ethereum has been on a steady rise, hitting its all-time high value of $1,972.85 in March 2023, and almost hitting a $2,000 value point. The popular cryptocurrency might see an even greater surge in price, if the proposed Ethereum Improvement Proposal (EIP) 1559 is implemented.
The EIP 1559 proposal suggests an improvement to the existing Ethereum transaction fee system, which will greatly benefit the users of the blockchain. The current system follows a bidding process where users have to compete with each other by raising fees to get their transaction processed faster. This can lead to large transaction fees during times of high network congestion.
The proposed improvement introduces the use of “gas tokens” – a pre-purchased token used to pay for transaction fees at a fixed price. This new system will reduce transaction fees for users by eliminating the bidding process and allowing for the prediction of a transaction fee with certainty.
The implementation of EIP 1559 is not yet confirmed but if successful, users can expect benefits such as more predictable and lower transaction fees on the Ethereum blockchain. This, in turn, will lead to an increased use of the Ethereum network, thus making it a more attractive investment opportunity for traders.
This improvement in the Ethereum network can be the possible catalyst for the continued price rally seen in ETH over recent months. It is predicted that the price of Ethereum could see a significant boost if the EIP 1559 is implemented.
With the increasing popularity and adoption of cryptocurrencies globally, Ethereum’s upward trajectory seems to be on track. However, it is important to note that investing in cryptocurrency can be risky due to its volatile nature, so caution should always be exercised.
According to https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-rally-to-2-000-likely-fueled-by-this-developmental-catalyst-in-eth-202305060616
The material in this article is written on the basis of another article.