The Ethereum EIP-1559 upgrade, implemented in August 2021, significantly altered its fee structure by introducing a base fee that’s burned, reducing ETH supply over time. This deflationary mechanism sparked debates about its impact on Ethereum’s price. Proponents argue it enhances scarcity, potentially driving value up as demand grows, especially with Ethereum’s role in DeFi and NFTs. Data post-upgrade shows periods of correlation between fee burns and price spikes, like in late 2021 when ETH hit all-time highs. However, critics note external factors—market sentiment, Bitcoin trends, and macroeconomics—often overshadow EIP-1559’s effect. While the upgrade improves user experience with predictable fees, its direct price influence remains debated. Long-term, if burning outpaces issuance, ETH could see sustained upward pressure, but short-term volatility often dominates.