Ethereum Price Prediction – Bulls Emerge on EIP 1559 Launch
With the successful launch of the highly anticipated Ethereum Upgrade, it’s time to revisit our Ethereum price Prediction for the last half of 2021 and 2022. A core tenet of the Ethereum Upgrade includes an overhaul of the economic structure – referred to as EIP 1559 – that is focused on increasing the scalability, lowering costs, and boosting the value of Ethereum’s blockchain and ETH currency. With Ethereum’s blockchain supercharged, we’re also witnessing major platforms – such as 1INCH Exchange – introducing new incentives to increase activity amongst investors and welcome the bulls back to the market.
What is EIP 1559 & How It’s Impacting Ethereum Price Prediction
The highly anticipated upgrade to the Ethereum network called London includes four Ethereum Improvement Plans. As part of this upgrade, there is a significant change in the overall economics of ETH. Not only will transaction fees decline on Ethereum, but also ETH will become a deflationary asset as the supply of ETH will decline steadily with a new process of removing tokens from circulation – via the new built-in mechanism EIP 1559.
The upgrade is highly anticipated by investors, both institutional and small-scale alike, as it may bring ether increased store-of-value appeal. The reduction of fees, coupled with the reduction of energy usage is anticipated to drive more investors to adopt Ethereum’s blockchain and its native currency, thus working to drive up the price. Ethereum users also have their sights set on this upgrade, as it will make user fees more predictable and reduce delays for the completion of transactions, also reducing the number of failed transactions.
Ethereum’s ecosystem has grown and surged to include more than 3,000 decentralized applications (dApps), is home to the world’s second largest cryptocurrency, and is anticipated to continue to dominate the world of DeFi.
For more information, be sure to check out the video below.
Ethereum Price History Suggests to Ignore Short-Term Volatility
Since its initial launch in 2015, Ethereum has undergone six upgrades to improve its blockchain, with its seventh having launched this week. Historically, Ethereum prices have witnessed volatility in the days after initial upgrades with pricing quickly stabilizing and delivering strong performance shortly thereafter (with a 2-3 month period). This has encouraged many to ignore the short-term volatility that is often associated with upgrades given the major wins looming around the corner for HODLers. In response to this momentous upgrade, the anticipated reduction in supply has been reflected in a spike in ETH price already. Much like the Bitcoin halving event which boosted BTC prices, ETH EIP 1559 will introduce a reduced supply of Ether and should result in major pricing gains.
Reviewing Ethereum Price History post upgrade, we find that prices have increased:
5% within 30 days
29% within 60 days
64% within 90 days
As it stands, investors willing to take an extra risk at this volatile time will reap ample rewards. In a recent analysis published on their platforms, cryptocurrency insights provider Santiment wrote, “We could say that others are waiting for post hard fork ETH and BTC movements, sitting in “wait-and-see” position. Either to jump higher and ride on an upgrade fact. Either to dump on “buy the rumor sell the news”. And this is nicely reflected in data.”
Since its first major upgrade, Tangerine in 2016, monthly average returns for Ethereum have been 18% and with a price of $2,675 at press time, analysts are predicting more bullish days ahead.
1INCH Exchange to Refund Gas Fees with 10MM Token Airdrop
In more steps towards energy-efficient crypto, the decentralized exchange aggregator 1inch is planning on giving away more than $23 million worth of their token 1INCH as of September 1st. Operating as an exchange aggregator means the company splits crypto users’ deposits across several different exchanges in an effort to get the best rates via diversification.
In an announcement made by the 1inch Exchange, it was revealed that they will begin issuing monthly refunds for users who stake their tokens. Depending on the amount staked, users will receive a proportional refund on their gas fees. For example, users who stake:
100,000 1INCH or more will receive a full refund for their gas fees
10,000 1INCH will get a 75% gas refund
1,000 1INCH allows users to get 50% gas refund
100 1INCH will get you a 25% gas refund
According to the foundation, these refunds will continue to take place until they distribute 10 million 1INCH tokens.
This program was suggested by 1INCH Exchange community members as a possible remedy for high gas prices, a problem both the Ethereum and 1inch networks are actively working to solve. In reaction to this news, the price of 1INCH rose over 15% in just under 24 hours, reaching $2.35.
For more information, watch this video below.