Bitcoin Forum

EIP-1559 is a proposed update owned by Ethereum that is planned to be implemented on the Ethereum blockchain in conjunction with the London Hard Fork, in July or August this year. where the network will 'burn' a small amount of ETH each time the currency is used to pay a gas fee on a transaction. This aims to reduce the amount of ETH circulating in the crypto asset trading market.

that will be making the price of ethereum will very high in the future. the main purpose for the EIP 1559 to prevent the inflation that was happening caused by the unlimited supply and it will be also decreasing the block reward. There are lots of ether miners who against this EIP but we will see that whether the implementation of EIP 1559 will be successfully reducing the inflation.

I have read about EIP in the past months too, and believe it will be a useful feature for ETH. I have no idea about the technical side, but a burning in the supply will surely increase the attention to the project and its price. Remember, when ETH2's testnet was announced, its price was pumped a lot. EIP1559 may not be an ETH2, but when prices are not so good, this little news will attract many.

The most interesting thing for crypto asset traders is that now Ethereum will reduce the amount of ETH in circulation by destroying some tokens each time it is used to process multiple transactions in order to try to control inflation in Ethereum.
 When EIP-1559 is implemented, the Ethereum gas fee will be replaced with a mandatory fee and determined by an algorithm called the base fee

Can't say about just a single Improvement Proposal but the overall improvements in Ethereum blockchain has been positive and that's driving the experience to better side. The transaction prices are largely reduced and the speed increased. Using dapps and defis are getting pleasant again. Overall the team has worked hard to deliver and I believe they'd keep on improving Ethereum and maintain it as a prime contender of utility market.

There are some big miners against this proposa and there will be a lot of drama will be going on. this EIP will be making ethereum to did auto burn from the transaction fees but it's not clear about how much ethereum will be burned as there was no percentage about how much will be taking from the tx fees to burn ethereum,.

That sounds like a deflationary token model like the BOMB token if I'm correct, can't remember the name. I don't think it's going to make ETH very much higher. There are some deflationary tokens in the market already. They are not in a good position. If such a model would have a great effect, the deflationary token would have pumped a lot.
EIP may have negative effect on ETH miners. Miners will be harmed most when EIP1559 gets implemented.

Maybe back in the day but I do not see it now. Think about it this way there are a lot of reasons to go up if you are having problems but when there is no gas fee problem and the market is not doing that well then why would it increase it? About a few months ago when gas fee was a huge problem and the market was in a bull run then it would have been a great deal, I would have totally seen it go up, they should have rushed it and do it right away, they postponed it to July and now both the market is bad and the gas fee is cheap so there is nothing going on that could make it worth it.

At the end of the day there are not that many reasons for it to go up now, sure it will still make gas fee cheaper but that is not going to really impact a lot in a day when fees are already quite cheap, it is showing 1-2 dollars (to me it is a bit more for no reason) and that can't really get way too lower.

Such events are generally priced-in weeks and months before they happen, and the price can actually slightly go down on the day they happen - "buy the rumor, sell the news". And look at the ETH/BTC chart, it's already in decline, ETH peaked at 0.081 BTC and now it's 0.063 BTC, it's very likely entering bear market and only going to slip further. And altcoin season in general is gone now, the only hope to see it again is if Bitcoin resumes a bull run and establishes a new ATH.

Yep agree, im not sure EIP 1559 will be effective to push the gas price down, i think the reason why the gas fee cheaper right now is because the network isnt as busy as before.
But the opinion that EIP 1559 make the price of ETH pushing up maybe true, because the miner (who usually sell the reward and create supply) isnt getting reward as much like before.

The price of ETH already rallied a lot in the past few month basically because anyone planning to stake the coins already purchased them and so is the reason we see the price well above $2k and even when the EIP 1559 is implemented i am not expecting any rapid growth in price because anyone who had plans on staking the coins already invested. It all depends upon how the migration will happen without creating much issues on the technical side of things and then we can talking about the price.

I'm not sure about that. have you read the whole proposal about EIP 1559? that will be creating a limitation for the gas fees. the fees can't be affected by the people who wanna sell their coins by putting a very big fees.
That means if the people who wanna try to send their coins with low fees can stay with it. The problem that faced by ethereum when someone sent with very big fees and this can affect the average gas price;
This will be eliminated.

I think it is affecting the price of ETH a lot, in the last period we have seen ETH grow a lot and with future plans I also think it has great potential to continue to increase in the near future.

From my understanding, EIP-1559 will implement a "base fee amount" through the main protocol. In short, this improvement should disallow miners to manipulate a single fee with the purpose of accumulating more fees from other ETH transactions. Extra fees will be internally burned in the Ethereum blockchain.

I heard that some famous cryptocurrency analytics speak well about the "London" hard fork scheduled for July 2021, because transaction fees will be more predictable. They even say that EIP-1559 is a turning point in the entire ecosystem.

As far as I can see, transaction fees are currently not so high as they were two months ago, so it seems that someone has already stopped spamming with ETH transactions.

I personally assume that the price of Ethereum will increase after this improvement is implemented.

I agree with you. EIP-1559, could make ethereum even better. with this application the fee will not be as expensive as last month. the impact of this maybe the price of ethereum will increase. and this could be the turning point of the ERC20 network, where previously ERC20 lost in prestige to BSC.

Personally, I don't expect too much for eth price to go up because it's already going up high compared to last year, but I wonder how much coins will actually get burned each day compared to the coins generated from mining. if it's only small percentage compared to the coins generated from mining then I doubt it's gonna have any significant effect, and EIP-1559 already being waited for too long the hype already fading. I'd say nothing much gonna be happening even after EIP-1559 rolls out but thats just my 2 cents.

Chances are that the price might pump before the London fork. Ethereum dominance has already increased which is a good sign for anyone to make money fast. I am not sure whether EIP-1559 would be successful in controlling inflation. I only know that price will surely pump before it happens.

I can imagine how much ethereum will be burned every day once this will be fully implemented. If this will meet the expectation of the ethereum core developers and then the inflation could give a long term impact to the price of ethereum. The big companies will be interesting to adopt ethereum and they will buy more to be used as reserved funds similarly with bitcoin.
that's the best scenario

I think it's gonna be the same as the usualy halving that bitcoin has, the price go up when there's rumour going around and then there's the sell off when the halving actually occurs.
After all, such planned upgrade or event is already on everyone's schedule can't expecting something surprising coming out of it.
But the recent berlin hardfork also helps the price to go up although everyone already expect it to happen, EIP1559 is something bigger than that so i'm also expecting it to be more or less help the price
to go up again.

I know the ethereum network was released before BSC , and is the second largest crypto alongside bitcoin. but didn't you realize that in the last few months all the new projects released on average use the binance smart chain. and bnb can go up more than 100x, because of this. all that happens when the gas fee on the ethereum network is very high. So my statement about erc20 losing prestige when gas fees in the network rises is very reasonable. many people complained at the time, it even took 30$ just to make a transaction on a DEX.

I'm telling you not to just look at the price, but look at the performance. when viewed from the price, the price of etherum goes up, but it's not in line with their network performance.

If it's run as it should be, the price of ETH will going up gradually overtime because the gas fee will burn the ETH total supply, this means everytime the limited supply of ETH is going down and the price of ETH should be higher. I think it's not too late to collect some ETH to our portofolio due to this system will be tested this year on Q3-Q4

I think yes even though there are other alternative coin with same use case with much better improvisation like BSC, DOT, TRX but When EIP-1559 Implemented on next fork maybe we can see some significant price impact since it's using Burn Mechanism and beside with more use case the demand will increase and it's going to give positive impact to the Ethereum market, Well for now we just can wait.

The burning really promising but we should take a look at what rate the supply gonna decrease, can't really make sure of that until EIP1559 implemented so we gonna see
the real scenario. Other than that, if ETH could get back all the dapps from moving to BSC then it's gonna add more demand to ETH for sure for gas fee, etc.
The last thing i want is for the upgrade that takes place in july to be delayed because that's gonna break our expectation and probably make us missing out the momentum for the market
to drive the price up.

Burning some ETH in every blockchain transaction is a good breakthrough to maintain the price in the market high, but my question is, will the daily burning amount exceed the amount of ETH generated by the miners?
If daily burning is not much more than miners do around the world, then the purpose of burning for pumping the price will be in vain.