diff --git a/CHANGELOG.md b/CHANGELOG.md
index e1eb6abc..3442be09 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -39,6 +39,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (feemarket) [tharsis#770](https://github.com/tharsis/ethermint/pull/770) Enable fee market (EIP1559) by default.
 * (rpc) [tharsis#769](https://github.com/tharsis/ethermint/pull/769) Fix default Ethereum signer for JSON-RPC.
 
 ## [v0.8.0] - 2021-11-17
diff --git a/tests/rpc/rpc_pending_test.go b/tests/rpc/rpc_pending_test.go
index 575bb584..544ee08b 100644
--- a/tests/rpc/rpc_pending_test.go
+++ b/tests/rpc/rpc_pending_test.go
@@ -100,7 +100,7 @@ func TestEth_Pending_GetTransactionCount(t *testing.T) {
 	t.Logf("Current nonce is %d", currentNonce)
 	require.Equal(t, prePendingNonce, currentNonce)
 
-	param := makePendingTxParams()
+	param := makePendingTxParams(t)
 	txRes := Call(t, "eth_sendTransaction", param)
 	require.Nil(t, txRes.Error)
 
@@ -278,7 +278,7 @@ func TestEth_Pending_GetTransactionByHash(t *testing.T) {
 
 	// create a transaction.
 	data := "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"
-	param := makePendingTxParams()
+	param := makePendingTxParams(t)
 	param[0]["data"] = data
 
 	txRes := Call(t, "eth_sendTransaction", param)
@@ -306,7 +306,7 @@ func TestEth_Pending_GetTransactionByHash(t *testing.T) {
 
 func TestEth_Pending_SendTransaction_PendingNonce(t *testing.T) {
 	currNonce := GetNonce(t, "latest")
-	param := makePendingTxParams()
+	param := makePendingTxParams(t)
 
 	// first transaction
 	txRes1 := Call(t, "eth_sendTransaction", param)
@@ -331,13 +331,15 @@ func TestEth_Pending_SendTransaction_PendingNonce(t *testing.T) {
 	require.Greater(t, uint64(pendingNonce3), uint64(pendingNonce2))
 }
 
-func makePendingTxParams() []map[string]string {
+func makePendingTxParams(t *testing.T) []map[string]string {
+	gasPrice := GetGasPrice(t)
+
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
 	param[0]["to"] = addrA
 	param[0]["value"] = "0xA"
 	param[0]["gasLimit"] = "0x5208"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 	return param
 }
diff --git a/tests/rpc/rpc_test.go b/tests/rpc/rpc_test.go
index 7f2526c3..4d020f52 100644
--- a/tests/rpc/rpc_test.go
+++ b/tests/rpc/rpc_test.go
@@ -412,7 +412,7 @@ func TestEth_SendTransaction_Transfer(t *testing.T) {
 }
 
 func TestEth_SendTransaction_ContractDeploy(t *testing.T) {
-	param := makeTestContractDeployParam(true)
+	param := makeTestContractDeployParam(t, true)
 	rpcRes, err := callWithError("eth_sendTransaction", param)
 	require.NoError(t, err)
 
@@ -422,7 +422,7 @@ func TestEth_SendTransaction_ContractDeploy(t *testing.T) {
 }
 
 func TestEth_SendTransaction_ContractDeploy_no_gas_param(t *testing.T) {
-	param := makeTestContractDeployParam(false)
+	param := makeTestContractDeployParam(t, false)
 	_, err := callWithError("eth_sendTransaction", param)
 	// server returns internal error.
 	require.Error(t, err)
@@ -503,12 +503,14 @@ func TestEth_GetFilterChanges_WrongID(t *testing.T) {
 
 // sendTestTransaction sends a dummy transaction
 func sendTestTransaction(t *testing.T) hexutil.Bytes {
+	gasPrice := GetGasPrice(t)
+
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
 	param[0]["to"] = "0x1122334455667788990011223344556677889900"
 	param[0]["value"] = "0x1"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 	rpcRes := call(t, "eth_sendTransaction", param)
 
 	var hash hexutil.Bytes
@@ -529,6 +531,8 @@ func TestEth_GetTransactionReceipt(t *testing.T) {
 
 // deployTestERC20Contract deploys a contract that emits an event in the constructor
 func deployTestERC20Contract(t *testing.T) common.Address {
+	gasPrice := GetGasPrice(t)
+
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
@@ -539,7 +543,7 @@ func deployTestERC20Contract(t *testing.T) common.Address {
 	param[0]["data"] = hexutil.Encode(data)
 
 	param[0]["gas"] = "0x200000"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 
 	rpcRes := call(t, "eth_sendTransaction", param)
 
@@ -559,6 +563,7 @@ func deployTestERC20Contract(t *testing.T) common.Address {
 // sendTestERC20Transaction sends a typical erc20 transfer transaction
 func sendTestERC20Transaction(t *testing.T, contract common.Address, amount *big.Int) hexutil.Bytes {
 	// transfer
+	gasPrice := GetGasPrice(t)
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
@@ -567,7 +572,7 @@ func sendTestERC20Transaction(t *testing.T, contract common.Address, amount *big
 	require.NoError(t, err)
 	param[0]["data"] = hexutil.Encode(data)
 	param[0]["gas"] = "0x50000"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 
 	rpcRes := call(t, "eth_sendTransaction", param)
 
@@ -607,12 +612,13 @@ func TestEth_GetTransactionReceipt_ERC20Transfer(t *testing.T) {
 
 // deployTestContract deploys a contract that emits an event in the constructor
 func deployTestContract(t *testing.T) (hexutil.Bytes, map[string]interface{}) {
+	gasPrice := GetGasPrice(t)
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
 	param[0]["data"] = "0x6080604052348015600f57600080fd5b5060117f775a94827b8fd9b519d36cd827093c664f93347070a554f65e4a6f56cd73889860405160405180910390a2603580604b6000396000f3fe6080604052600080fdfea165627a7a723058206cab665f0f557620554bb45adf266708d2bd349b8a4314bdff205ee8440e3c240029"
 	param[0]["gas"] = "0x200000"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 
 	rpcRes := call(t, "eth_sendTransaction", param)
 
@@ -744,13 +750,14 @@ func deployTestContractWithFunction(t *testing.T) hexutil.Bytes {
 	// }
 
 	bytecode := "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"
+	gasPrice := GetGasPrice(t)
 
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
 	param[0]["data"] = bytecode
 	param[0]["gas"] = "0x200000"
-	param[0]["gasPrice"] = "0x1"
+	param[0]["gasPrice"] = gasPrice
 
 	rpcRes := call(t, "eth_sendTransaction", param)
 
@@ -1028,14 +1035,15 @@ func makeEthTxParam() []map[string]string {
 	return param
 }
 
-func makeTestContractDeployParam(withGas bool) []map[string]string {
+func makeTestContractDeployParam(t *testing.T, withGas bool) []map[string]string {
 	param := make([]map[string]string, 1)
 	param[0] = make(map[string]string)
 	param[0]["from"] = "0x" + fmt.Sprintf("%x", from)
 	param[0]["data"] = "0x6080604052348015600f57600080fd5b5060117f775a94827b8fd9b519d36cd827093c664f93347070a554f65e4a6f56cd73889860405160405180910390a2603580604b6000396000f3fe6080604052600080fdfea165627a7a723058206cab665f0f557620554bb45adf266708d2bd349b8a4314bdff205ee8440e3c240029"
 	if withGas {
+		gasPrice := GetGasPrice(t)
 		param[0]["gas"] = "0x200000"
-		param[0]["gasPrice"] = "0x1"
+		param[0]["gasPrice"] = gasPrice
 	}
 
 	return param
diff --git a/tests/rpc/utils.go b/tests/rpc/utils.go
index 0481ba64..3fa2abeb 100644
--- a/tests/rpc/utils.go
+++ b/tests/rpc/utils.go
@@ -267,6 +267,15 @@ func GetNonce(t *testing.T, block string) hexutil.Uint64 {
 	return nonce
 }
 
+func GetGasPrice(t *testing.T) string {
+	gasRes := Call(t, "eth_gasPrice", []interface{}{})
+
+	var gasPrice string
+	err := json.Unmarshal(gasRes.Result, &gasPrice)
+	require.NoError(t, err)
+	return gasPrice
+}
+
 func UnlockAllAccounts(t *testing.T) {
 	var accts []common.Address
 	rpcRes := Call(t, "eth_accounts", []map[string]string{})
diff --git a/x/feemarket/types/params.go b/x/feemarket/types/params.go
index 78c80f51..f347181b 100644
--- a/x/feemarket/types/params.go
+++ b/x/feemarket/types/params.go
@@ -43,7 +43,7 @@ func NewParams(noBaseFee bool, baseFeeChangeDenom, elasticityMultiplier uint32,
 // DefaultParams returns default evm parameters
 func DefaultParams() Params {
 	return Params{
-		NoBaseFee:                true,
+		NoBaseFee:                false,
 		BaseFeeChangeDenominator: params.BaseFeeChangeDenominator,
 		ElasticityMultiplier:     params.ElasticityMultiplier,
 		InitialBaseFee:           params.InitialBaseFee,