5,481 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 5,481.63 Ether (ETH) worth $9,993,510 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's upgrade known as EIP-1159, which changes 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 -5.96%.
August 16, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of Ether due to the EIP-1159 upgrade could potentially decrease the supply of Ether, making it a deflationary currency. This could increase the value of Ether in the short term.
The burning of Ether due to the EIP-1159 upgrade decreases the supply of Ether. If the demand for Ether remains constant or increases, this decrease in supply could lead to an increase in the price of Ether. However, this is speculative and depends on various factors including market sentiment and overall demand for Ether.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100