2,575 ETH Worth $4M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 2,575.57 Ether (ETH) worth $4.2M was burned from Ethereum transactions on Sunday. 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 was -0.56% yesterday.
September 04, 2023 | 6:00 pm
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The burning of 2,575.57 Ether (ETH) worth $4.2M could potentially impact the price of ETH. The Ethereum blockchain's upgrade EIP-1159, which burns a base fee from each transaction, could lead to a decrease in the supply of Ether, potentially increasing its value.
The burning of Ether reduces its supply, which could potentially increase its value if demand remains constant or increases. The EIP-1159 upgrade changes the fee model and burns a base fee from each transaction, further reducing the supply of Ether. This, combined with the expected decrease in the issuance rate with the Ethereum 2.0 upgrade, could lead to Ether becoming a deflationary currency, potentially increasing its value.
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