BitBoy says while everyone has been focusing on on the fundamentals of Ethereum, the technicals are also starting to align for the next big run up.
A lot has been happening behind the scenes which held the price back from reaching its full potential. The battle between Ethereum miners, De-Fi projects and Ethereum foundation caused the price manipulation but won’t happen again. Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain (2:06)
High gas fees on the Ethereum network are making it nearly impossible for retail investors to interact with DeFi protocols, but the same doesn’t apply to whales. Gas fees are not calculated based on the size of the transaction but rather the cost to interact with smart contracts- a $100 trade and a $10,000 trade on Uniswap could both cost roughly $50 in fees under same conditions sidelining retail investors (3:39).
The newly introduced Ethereum Improvement Proposal (EIP) 1559 by the Ethereum foundation will be packaged with the London hard fork this coming July. EIP 1559 flips a typical blockchain transaction on its head in order to fix numerous issues with Ethereum’s user experience.
Gas fees traditionally sent to miners by users (for transactions to be included in a block) will now be sent to the network itself as a sort of ‘burn’ called ‘base fee’ with only an optional tip paid to miners. The burnt fee is set algorithmically, making it easier for users to pay a fair fee.
Flexpool, the largest North American Ethereum mining pool, shared their displeasure about the EIP 1559 and tweeted “Stop ETH Speculators. Start respecting Miners”
Flexpool however have been dumping Ethereum since their tweet in January 14, 2021 after not selling any for almost a year. Sparkpool the largest Ethereum mining pool have also increased their ETH sales including a day peak of 11,409 ETH.
Ben says with all cleared out, he believes March will be massive for ETH going into mid-April, he predicts $2,500 price for Ethereum.
This episode premiered on March 9th, 2021.