Filecoin implementation of EIP-1559 confirms the transition from inflation to deflation. The upgrade on the network does not reduce network congestion whole miner rewards are greatly slashed. FIL is seeking support at the 100 SMA in a bid to secure the move toward $50. Filecoin Foundation has popularized EIP-1559 as a solution to volatile prices on the network during times of congestion. The upgrade was initially a proposal but has transformed into an actionable upgrade currently being implemented on the mainnet. EIP-1559 unlikely to relieve network congestion Following the implementation of the proposal, Filecoin found that it achieved deflation and stimulated the price. However, reckoned that network congestion was not relieved. Moreover, the income miners get greatly slashed. The Filecoin network’s upgrade will serve as the benchmark for curbing network congestion and high gas fees on the Ethereum network. EIP-1559 is also referred to as the Ethereum Improvement Proposal. It is advocating for a new on-chain fee pricing mechanism called the market exchange rate. According to Filecoin: “Ethereum EIP-1559 upgrade: (1) The overall shift from inflation to deflation, prices will be stimulated; (2) Network congestion will not be relieved, and the short-term still depends on the progress of Layer 2; (3) The income of miners will therefore be greatly reduced, estimated to be about 20%-35%.” Filecoin corrects from a 19% triangle breakout Filecoin is trading at $39 after a recent rejection from highs around $45. Before the barrier, the token accrued massive gains after a technical breakout from a symmetrical triangle. The breakout target was achieved, but bulls lost steam leading to losses under $40. In the meantime, FIL is seeking support at the 100 Simple Moving Average (SMA) on the 4-hour chart. Slicing through this zone is likely to see Filecoin extend the bearish leg to $35. The Moving Average Convergence Divergence (MACD) cross under the signal line reinforces the bearish outlook. FIL/USD 4-hour chart It is worth mentioning that if support at the 100 SMA stays intact, Filecoin will resume the uptrend toward $50. Closing the day above $40 would be a bullish signal. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Crypto News share Read Next USD/RUB: A more hawkish CBR provides impetus for a move below 70.00 – MUFG FX Street 1 year Filecoin implementation of EIP-1559 confirms the transition from inflation to deflation. The upgrade on the network does not reduce network congestion whole miner rewards are greatly slashed. FIL is seeking support at the 100 SMA in a bid to secure the move toward $50. Filecoin Foundation has popularized EIP-1559 as a solution to volatile prices on the network during times of congestion. The upgrade was initially a proposal but has transformed into an actionable upgrade currently being implemented on the mainnet. EIP-1559 unlikely to relieve network congestion Following the implementation of the proposal, Filecoin found that it achieved deflation and… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.