In a recent video, popular analyst Lark Davis discusses with his subscribers about big changes coming to Ethereum (ETH) in the next 7 days and how it is going to impact the price.
7 Days It All Changes
According to Davis, the fee-burning ethereum upgrade, known as Ethereum Improvement Proposal (EIP) 1559 is set to have its first testnet block on Ropsten this June 24th.
“EIP1559 as you might know changes the algorithm to set fees at such a level that there is 50% extra capacity, with it setting a base fee that is burned”.
EIP stands for Ethereum Improvement Program. It is an upgrade to the blockchain promoted by the Ethereum Foundation that controls the implementation of Ethereum software. The net effect of EIP 1559 will be to reduce the supply of Ethereum over time.
He adds:
“We have this deflationary force coming for ethereum, combined with of course the massive drop coming for ethereum inflation and you have a pretty damn big deal happening for ethereum overall so this is very exciting stuff happening for ethereum. Very excited to see this coming out to the testnet”.
The upgrade itself also doubles the gas limit, so adding a bit of capacity to the ethereum network, with the fee burning further potentially reducing total supply during highly congested periods at a rate of about $50 million a day.
A week after, the Proof of Authority (PoA) Goerli testnet is to be forked on June 30th, followed by a further fork of Rinkeby on July the 7th.
Big Money Wants Ethereum
The investment bank Goldman Sachs plans to offer trading in Ether the months ahead, according to Mathew McDermott, Head of digital assets at Goldman Sachs.
“This is showing that there’s a very very strong demand from institutional players from the rich family offices and all this stuff to get exposure to different products related to particularly ethereum”.
Not to mention, the crypto KOL also adds that Micro Strategy CEO, Michael Saylor – famous Bitcoin bull, says he sees ethereum as a serious competitor to the financial industry and there was a place for different crypto assets when asked about bitcoin maximalism.
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