6,164 ETH Worth $11M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 6,164.24 Ether (ETH) worth $11,793,184 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 -7.89%.
July 05, 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, coupled 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 decrease the issuance rate of new Ether. Both these factors could potentially increase the value of ETH by creating a supply-demand imbalance.
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