10,643 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 10,643.06 Ether (ETH) worth $20,059,716 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's upgrade known as EIP-1159, which changes 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 -16.51%.
July 06, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially lead to ETH becoming a deflationary currency. This, along 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. Combined with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, this could lead to a decrease in supply and potentially increase the value of ETH if demand remains constant or increases.
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