4,024 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 4,024.74 Ether (ETH) worth $6,558,190 was burned from Ethereum transactions on Thursday. This follows the implementation of the Ethereum improvement proposal EIP-1159, 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 was -3.08% yesterday.

September 08, 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. With the upcoming Ethereum 2.0 upgrade, the issuance rate of new Ether is expected to decrease, potentially making ETH a deflationary currency.
The burning of Ether from transactions reduces the overall supply of Ether. This, combined with the expected decrease in the issuance rate of new Ether due to the Ethereum 2.0 upgrade, could increase the value of Ether due to scarcity. Therefore, the price of ETH is likely to go up in the short term.
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