NFT EveningNFT Evening
    Facebook Twitter Instagram Reddit
    NFT Evening NFT Evening
    • NFT News
      • Collectibles
      • Crypto Art
      • Blockchain games
      • Metaverse
      • Music
      • Interviews
      • Columns
    • NFT Guides
      • Top NFT Projects
      • Top Blockchain Games
      • NFT Marketplaces and Tools
    • Learn here!
      • What is an NFT?
      • How to keep your NFTs safe
      • NFT Glossary
    • NFT Calendar
      • NFT Drops
      • NFT Conferences
      • NFT Launchpad
    • Newsletter
    NFT EveningNFT Evening
    NFT News

    Home » NFT News » EIP-1559 Gas Fee Failure Offers Insight into Crypto Investor Behaviour

    EIP-1559 Gas Fee Failure Offers Insight into Crypto Investor Behaviour

    By YoloSeptember 14, 2021Updated:February 2, 20232 Mins Read

    It’s official: EIP-1559 is a gas fee failure. Simply put, this particular Ethereum Improvement Proposal (EIP) has not brought prices down. However, it was never really about gas, and instead the focus was on making transaction charges clearer.

    EIP-1559 Ethereum
    Ethereum Improvement Proposal 1559 has failed to reduce gas fees, but that was never the idea

    Crucially, this means the recent, divisive Ethereum update — which included EIP-1559 — aimed at making fees predictable, not guaranteeing low costs. Like most ‘improvements’ unveiled at the time, the idea was to ease transition to Eth 2.0. One of the most visible changes within this was the introduction of a new base fee. A seperate priority fee is available for those in a rush.

    A New Bidding Model

    Ultimately, this creates a new bidding model for miners. Basically, they no longer need to ask for faster transactions. Instead, buyers can increase bids to prioritise them. It’s important to note that, as CoinBase reports, transactions are not yet organised on the new EIP-1559 standard. In fact, since the announcement, transaction fees reached their highest since May.

    Ethereum Gas Fees
    Ethereum gas fees have continued to set new records in recent times

    The growing popularity of NFTs and instability within the wider crypto market have contributed to rising gas fees, largely as a result of network congestion. OpenSea, the leading Ethereum NFT marketplace, is now responsible for 20% of gas consumption. It posted $3billion woth of transactions in August 2021 alone. More than 160,000 ETH burnt since the new update, making ETH tokens rarer, too. And, as we all know, scarcity equals value.

    In the Era of EIP-1559 Gas Fee Prices May Still Fall

    Just because many people have labelled EIP-1559 as a gas fee fail doesn’t mean things won’t get better in the future. 2021 has been the year of NFT projects, but this area of the market is expected to level out, which could mean an end to ridiculously high demand. In turn, this will lead to lower gas fees.

    However, as Ethereum becomes more mainstream and more digital interactions take place, costs could still rise. Find out everything you need to know about Ethereum’s update here. Then read up on how the NFT event ‘The Sevens’ led to Ethereum fees rising by 300%.

     


    All investment/financial opinions expressed by NFTevening.com are not recommendations.

    This article is educational material.

    As always, make your own research prior to making any kind of investment.

    Ethereum NFTNft gas fees
    Previous ArticleChainmonsters Free-to-Play Earnings Confirmed
    Next Article Play-to-earn Blockchain Game Starchi Wins Grant from Polygon Foundation
    Yolo

    Yolo is simply our generic email address :)

    More great NFT Evening content:

    Blend: An 82% Share of the NFT Lending Market

    The Problem with NFT Lending

    June 8, 2023

    NFC Lisbon 2023 to Announce NFT Art Prize Winner on June 7th!

    June 8, 2023
    Paris Hilton Icons Only show for Avatar holders

    Get Ready to Party: tokenproof Empowers 11 Fans to Attend Paris Hilton’s Sold-Out Show!

    June 8, 2023

    Experience Digital Fashion: Weekday and The Fabricant Introduce Artifact 001

    June 7, 2023
    A picture from British artist Robert Alice.

    Robert Alice: NFT Artist Takes on Historic La Monnaie de Paris

    June 7, 2023
    Cathie Wood is one of the headline speakers for Christie's Art + Tech Summit

    Gucci and MoonPay Join Christie’s for Art+Tech Summit at Rockefeller Center

    June 7, 2023

    SEC Files Restraining Order Against Binance, Sues Coinbase – Yet Trading Volume Soars!

    June 7, 2023

    Luxury Fashion and Web3: 9dcc x Stapleverse Collaboration

    June 7, 2023

    NFTevening is the biggest website for NFT news. We cover; breaking news, upcoming mints, plus, interviews with top NFT artists and projects. Put simply, we are the best place for new and experienced non-fungible token fans — making content fun & accessible

    Privacy policy
    Terms and conditions

    Article Categories
    • Blockchain games
    • Collectibles
    • Columns
    • Crypto Art
    • Interviews
    • Metaverse
    • Music
    • NFT Guides
    • NFT Marketplaces and Tools
    • NFT News
    • Sponsored Content
    • Top Blockchain Games
    • Top NFT Projects
    NFT Calendar
    • Today’s NFT Drops
    • Upcoming NFT Drops
    • Solana NFT Drops
    • NFT Calendar
    • NFT Calendar : Add Your NFT Event
    Get In Touch
    • Advertise (Media Kit)
    • Job Opportunities
    • About Us
    • Contact Us
    • Newsletter
    NFT Beginners Guides
    • How to Sell NFT Art
    • How to Create NFT Art
    • How to Display NFT Art
    • How To Make Passive Income With NFTs
    • Best Crypto Wallet
    • Best NFT Coins
    • Best NFT Rarity Tools
    • What is a DAO ?
    • What Are Crypto Gas Fees ?

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version