Will EIP-1559 Get Implemented on Ethereum by The End of July?
Market participants are in favor of making this a reality while DeFi is busy making Ethereum attractive to the TradeFi people by pushing all their buttons.
The market is expecting EIP-1559 to be implemented on Ethereum by July 31, 2021.
According to the information markets platform, Polymarket, users are now pricing this event of happening at $0.71, up from $0.62, about 24 hours back. The volume on this market is under $75k.
Every Ethereum enthusiast and others are eagerly waiting for this update that will burn the fees paid in ETH. By making Ether a deflationary asset, it is expected to create a positive feedback loop for its prices.
Ethereum layer 2 scaling solution, sidechain project Polygon is one such example with over $10 billion in TVL. The excitement around these solutions and low fees is evident from the fact that MATIC token is the best performing coin this year, recording gain in five-digit percentage gain. MATIC -7.59% Polygon / USD MATICUSD $ 1.12
-$0.09-7.59% Volume 890.16 m Change -$0.09 Open $1.12 Circulating 6.65 b Market Cap 7.48 b 1 d Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 4 d Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 1 w Polygon to Integrate EY’s Blockchain Solutions Into Its Ecosystem
Y'all ain't ready for the tectonic shift that layer two will induce.
Imagine safe 20x leverage on assets, 100,000 liquidations a minute, oracles that report minute old prices, unlimited transactions per second for privileged accounts and HFT strategies that make TradFi quiver.
— Samuel Shadrach (@SamuelShadrach4) May 21, 2021
These layer 2 solutions will take the DeFi space to another level, marching towards $100 billion in TVL.
Its market cap has already surpassed these numbers, and following the recent sell-off, it is now aiming to hit a new ATH at $150 billion.
The DeFi sector, which continues to grow at a fast pace and will only gain speed with the layer 2 solutions, also emerged as the winner during the recent market volatility.
As we reported, DEXs are recording a collective volume of more than $100 billion in May, the height of the volume milestone hit on Black Wednesday, the day decentralized exchanges had their first combined $10 billion volume as well.
Unlike the centralized crypto exchanges, which continue to work like they do, going down on highly volatile days, DEXs have improved since the March 2020 debacle.
Maker, who struggled a lot during the March sell-off, didn't have a single issue this time, thanks to its new auction mechanism. Lending protocol Aave had its biggest day of liquidations ever with many complications. MKR -9.81% Maker / USD MKRUSD $ 2,284.64
-$224.12-9.81% Volume 168.71 m Change -$224.12 Open $2,284.64 Circulating 991.33 K Market Cap 2.26 b 4 d Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 4 w YFI’s Andre Cronje Builds a Tool to Bribe Curve Token Holders, Proposes to Implement in DeFi Blue Chips Too 1 mon Bloomberg and Galaxy Digital Launches DeFi Index; SEC Chair Gary Gensler says DeFi is “A Bit of A Misnomer” AAVE -7.28% Aave / USD AAVEUSD $ 279.78
-$20.37-7.28% Volume 336.12 m Change -$20.37 Open $279.78 Circulating 13.19 m Market Cap 3.69 b 4 mon Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 4 mon Software Provider Temenos Enables Crypto Trading for Banks 4 mon Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov
DeFi is helping make ETH attractive to the TradeFi people as it “is the type of investment that investment professionals love — disruptive tech, describable use cases, demonstrable traction … and cash flows,” said Hunter Horsely, Bitwise Investment CEO. It is basically pushing all the right buttons for the traditional market people.
Even DeFi projects are working towards it, “Aave Pro for institutions” is one such example.
The Ethereum ecosystem simply continues to get bigger and stronger with the only way to go from here is higher.