4,683 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 4,683.09 Ether (ETH) worth $7,527,975 was burned from Ethereum transactions on Thursday. This follows the implementation of the EIP-1159 upgrade on the Ethereum blockchain in August 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 was -4.32% yesterday.
September 01, 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. This, coupled with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could potentially make ETH a deflationary currency.
The EIP-1159 upgrade on the Ethereum blockchain has introduced a mechanism where a variable base fee from each transaction is burned, permanently removing it from circulation. This is reducing the supply of Ether. Additionally, the Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether from 4% per year to around 0.5-1%. This could potentially make the burn rate of Ether greater than the token's issuance, making ETH a deflationary currency. This could increase demand for Ether and potentially drive up its price.
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