6,425 ETH Worth $11M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 6,425.96 Ether (ETH) worth $11,171,409 was burned from Ethereum transactions on Wednesday. This follows the implementation of the Ethereum improvement proposal EIP-1159, which changes the fee model and burns a variable 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 was -7.66% yesterday.
August 17, 2023 | 6:00 pm
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The burning of Ether from transactions, following the implementation of EIP-1159, 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 supply and demand dynamics.
The burning of Ether removes it from circulation, reducing the overall supply. If demand remains constant or increases, this could lead to an increase in the value of Ether. The upcoming Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether, further reducing supply. Both these factors could potentially increase the value of Ether in the short term.
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