10,995 ETH Worth $19M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 10,995.51 Ether (ETH) worth $19.6M was burned from Ethereum transactions on Wednesday. This follows the implementation of the EIP-1159 upgrade on August 5th, which changed the fee model and introduced a variable base fee that is burned, lowering the supply of Ether.
May 18, 2023 | 6:00 pm
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The burning of 10,995.51 ETH worth $19.6M may lead to a deflationary currency as the Ethereum 2.0 upgrade is expected to decrease the issuance rate to 0.5-1%.
The EIP-1159 upgrade has introduced a variable base fee that is burned, lowering the supply of Ether. With the Ethereum 2.0 upgrade expected to decrease the issuance rate to 0.5-1%, the burn rate of Ether may become greater than the token's issuance, causing ETH to become a deflationary currency. This could potentially increase the value of ETH in the short term.
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