8,369 ETH Worth $13M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 8,369.10 Ether (ETH) worth $13,936,232 was burned from Ethereum transactions on Thursday. This follows the implementation of the Ethereum improvement proposal EIP-1159, which changes 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 was -11.17% yesterday.
August 18, 2023 | 6:00 pm
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The burning of Ether from transactions, as a result of the EIP-1159 upgrade, is reducing the supply of Ether. With the Ethereum 2.0 upgrade, the issuance rate of new Ether is expected to decrease, potentially making ETH a deflationary currency.
The EIP-1159 upgrade changes the fee model for Ethereum transactions, burning a base fee from each transaction and permanently removing it from circulation. This reduces the supply of Ether. Additionally, the Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether. Both these factors could potentially make Ether a deflationary currency, which could increase its value.
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