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- The issue of high gas prices of Ethereum attracted widespread footage during the summer of DeFi
- Ethereum Improvement Proposal (EIP) 1559 is the potential solution to the entire issue
- The price of Ethereum is directly related to the gas fees
High gas prices are a prickly topic for the Ethereum community. The problem attracted widespread footage during the summer of DeFi. Back then, the demand and the network usage of Ethereum were rocket-high. And the result was not so favourable in the changes.
Ethereum Improvement Proposal (EIP) 1559 is lauded as the potential solution to the entire issue. However, it was not clear whether we’d be able to see a rollout through it. Meanwhile, an update from the dev team hints at its release in 2021.
Ethereum advancing against Bitcoin
This week turned out to be unique for Ethereum as it did exceedingly well. With exceeding an all-time high, it finally managed to cross its existing limit of January 2018. Thus, the momentum remains concisely with the primary altcoin.
The daily volume of transactions of Ethereum is currently 30% stronger than the network of Bitcoin. Moreover, the ETHBTC trading pair rose 11% on establishing a new record high against the dollar. This is a clear indication of its capacity to top the market leader.
The next milestone aim is the scheduled rollout of ETH 2.0 Phase 1 ascending via shards, anytime this year.
The price of ETH has a direct impact on gas fees. Hence, the gas fees are rising consistently with the rise in the price of ETH. It has emerged so much that the use of Tether has exceeded ETH.
In conclusion, the problem of rising gas fees is making its presence evident once again.
The ongoing works of EIP 1559
The Ethereum team is very well aware of the high gas fees. Besides, EIP 1559 was first drifted back in June 2018.
Back then, Ethereum Co-founder Vitalik Buterin gave his instant approval to the proposal. However, internal struggles ensured doubtful attributes as to if the project will ever translate into reality.
However, ETH Core Developer Danny Ryan’s current update claims that the proposal is now in action. The team is actively working on it, and he has predicted its rollout this year. EIP 1559 intends to cover two significant things. It will establish a “market rate” for block inclusivity. Secondly, it will launch a transaction fee burn procedure.
Thus, it will be interesting to see when the much-anticipated launch will happen and how the crypto market will respond to it.
