4,859 ETH Worth $8M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 4,859.63 Ether (ETH) worth $8,011,059 was burned from Ethereum transactions on Wednesday. This follows the implementation of the Ethereum improvement proposal EIP-1159 on August 5th, 2021, which changed the fee model and introduced 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 -4.73%.
August 24, 2023 | 6:00 pm
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The burning of Ether following the implementation of EIP-1159 could potentially lead to ETH becoming a deflationary currency. This, coupled with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could impact the value of ETH.
The burning of Ether removes it from circulation, reducing the supply. The Ethereum 2.0 upgrade is expected to further decrease the issuance rate of new Ether. Both these factors could potentially lead to ETH becoming a deflationary currency, which could increase its value.
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