5,729 ETH Worth $11M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 5,729.17 Ether (ETH) worth $11,346,224 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 base fee from each transaction, permanently removing it from circulation. 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, potentially making ETH a deflationary currency.
July 13, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially make ETH a deflationary currency. This, along with the expected decrease in the 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 make ETH a deflationary currency, which could increase its value due to the reduced supply.
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