3,781 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 3,781.20 Ether (ETH) worth $6,984,776 was burned from Ethereum transactions. This follows the Ethereum blockchain's upgrade known as EIP-1159, which changed the fee model and burns a base fee from each transaction. This lowers the supply of Ether permanently. Ethereum is currently issuing new Ether at a rate of 4% per year, expected to decrease to around 0.5-1% with the Ethereum 2.0 upgrade. The net annualized issuance rate for Ether yesterday was -3.37%.
June 28, 2023 | 6:00 pm
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The burning of Ether from transactions, as a result of the EIP-1159 upgrade, is reducing the supply of Ether. This, coupled with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could potentially increase the value of Ether.
The EIP-1159 upgrade burns a base fee from each Ethereum transaction, permanently removing it from circulation. This reduces the supply of Ether. Additionally, the Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether. Both these factors could potentially increase the value of Ether due to supply-demand dynamics.
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