4,884 ETH Worth $8M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 4,884.68 Ether (ETH) worth $8,957,679 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 -5.05%.
August 04, 2023 | 11:54 am
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The burning of Ether from transactions, following the EIP-1159 upgrade, is expected to lower the supply of Ether, potentially increasing its value. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether, further impacting its value.
The burning of Ether removes it from circulation, reducing the supply. According to the law of supply and demand, if demand remains constant, a decrease in supply leads to an increase in price. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether, further reducing the supply and potentially increasing the price.
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