5,358 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 5,358.63 Ether (ETH) worth $10,128,934 was burned from Ethereum transactions. This follows the Ethereum blockchain's upgrade known as EIP-1159, which changed the fee model and includes a variable base fee that is burned, permanently removing it from circulation. 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 -6.12%.
July 20, 2023 | 6:00 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The burning of Ether following the EIP-1159 upgrade could potentially lead to a decrease in supply and an increase in the value of Ether. The net annualized issuance rate for Ether was -6.12%, indicating a deflationary trend.
The burning of Ether removes it from circulation, reducing the supply. With the Ethereum 2.0 upgrade, the issuance rate is expected to decrease, further reducing the supply. If demand remains constant or increases, this could lead to an increase in the value of Ether. The net annualized issuance rate of -6.12% indicates a deflationary trend, which could further increase the value of Ether.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100