4,186 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 4,186.37 Ether (ETH) worth $7,792,095 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, 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 -3.78%.
July 31, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of Ether, as a result of the EIP-1159 upgrade, is reducing the supply of Ether in circulation. This, coupled with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could potentially increase the value of Ether.
The burning of Ether reduces its supply in circulation. According to the law of supply and demand, if demand remains constant, a decrease in supply leads to an increase in price. Furthermore, the expected decrease in the issuance rate with the Ethereum 2.0 upgrade could further reduce the supply, potentially leading to an increase in the value of Ether.
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