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Ethereum Is One of Biggest Volume Losers on Crypto Market Ahead of EIP-1559 Launch

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Wed, 08/04/2021 - 08:02
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Arman Shirinyan
Ethereum is losing larger volume than biggest cryptocurrencies and the reason may be the upcoming network update
Ethereum Is One of Biggest Volume Losers on Crypto Market Ahead of EIP-1559 Launch
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Ethereum's trading volume has surged by more than 15 percent in 24 hours according to CoinMarketCap. The soon-to-be-released EIP-1559 proposal has already had a great impact on the Ethereum community and its traders.

Presumably, the main reason for the high inactivity from traders is the price movement that may or may not take place with ETH/BTC and ETH/USD trading pairs on cryptocurrency exchanges after the network update is released.

Ethereum Improvement Proposal 1559, or EIP-1559, is the massive Ethereum network update mostly aimed at changing the current fee mechanism. After the update, the new fee structure will be presented with a base fee that will replace the current auction-type fee that allows miners to increase them more than three to five times during congestion periods.

Ethereum Daily Chart
Source: TradingView.com

Previously, the Ethereum price had been rising for 11 days in a row, showing a 41 percent price increase. But once the cryptocurrency market and Bitcoin started losing their value, Ethereum has followed the general sentiment with a five percent price decrease.

Currently, Ethereum is trading at a value of $2,480 and moving down to the closest support lines, which are short-term moving averages.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.