5,079 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 5,079.60 Ether (ETH) worth $9,841,681 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's EIP-1159 upgrade, which changes the fee model and burns a variable base fee from each transaction. Ethereum is currently issuing new Ether at a rate of 4% per year, but this is expected to decrease to around 0.5-1% with the Ethereum 2.0 upgrade. The net annualized issuance rate for Ether yesterday was -5.87%.
June 30, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially decrease the supply of Ether, making it a deflationary currency. This could increase the value of Ether in the short term.
The EIP-1159 upgrade burns a variable base fee from each Ethereum transaction, decreasing the supply of Ether. With the Ethereum 2.0 upgrade, the issuance rate of new Ether is expected to decrease, which could make Ether a deflationary currency. This could increase the demand for Ether, thus increasing its value.
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