5,099 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 5,099.82 Ether (ETH) worth $9,362,153 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 -5.47%.
August 04, 2023 | 10:00 am
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The burning of Ether following the EIP-1159 upgrade and the expected decrease in issuance rate with Ethereum 2.0 could potentially make ETH a deflationary currency. This could impact the price of ETH in the short term.
The burning of Ether reduces its supply, and with the expected decrease in issuance rate with Ethereum 2.0, the supply of Ether could decrease further. This could potentially make ETH a deflationary currency, which could increase its price due to the reduced supply. However, this is speculative and depends on various factors including the demand for Ether.
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