4,091 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 4,091.09 Ether (ETH) worth $6.7 million was burned from Ethereum transactions. This is a result of the Ethereum blockchain's EIP-1159 upgrade implemented on August 5th, 2021, which changed the fee model and burns a variable 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 -3.21%.
September 07, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially lead to a decrease in the supply of Ether, making it a deflationary currency. This could increase the value of Ether in the short term.
The burning of Ether is a direct result of the EIP-1159 upgrade, which changes the fee model and burns a variable base fee from each transaction. This decreases the supply of Ether, which could increase its value due to the principles of supply and demand. Furthermore, the expected decrease in the issuance rate with the Ethereum 2.0 upgrade could further decrease the supply and increase the value of Ether.
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