5,618 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 5,618.05 Ether (ETH) worth $9,738,549 was burned from Ethereum transactions. This follows the Ethereum blockchain's upgrade known as EIP-1159, which changed 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 -6.02%.
August 29, 2023 | 6:00 pm
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The burning of Ether, following the EIP-1159 upgrade, is expected to lower the supply of Ether, potentially leading to a price increase. The net annualized issuance rate for Ether was -6.02% yesterday.
The burning of Ether reduces its supply. With the Ethereum 2.0 upgrade, the issuance rate is expected to decrease further. If the burn rate exceeds the issuance rate, Ether could become a deflationary currency, potentially leading to a price increase.
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