4,297 ETH Worth $8M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,297.92 Ether (ETH) worth $8,395,220 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. 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 -4.30%.
July 04, 2023 | 6:00 pm
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The burning of Ether following the EIP-1159 upgrade could potentially lead to ETH becoming a deflationary currency. This, combined with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could impact the value of ETH.
The burning of Ether removes it from circulation, reducing the supply. The Ethereum 2.0 upgrade is expected to further decrease the issuance rate of new Ether. Both these factors could potentially increase the value of ETH due to supply-demand dynamics.
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