4,449 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,449.71 Ether (ETH) worth $7,082,999 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's upgrade known as EIP-1159, which implemented a variable base fee for each transaction that is burned, permanently removing it from circulation. This is expected to make ETH a deflationary currency once the Ethereum 2.0 upgrade is implemented, which will decrease the issuance rate of new Ether to around 0.5-1% per year.
September 12, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially make ETH a deflationary currency, which could increase its value in the long run.
The burning of Ether due to the EIP-1159 upgrade reduces the supply of Ether in circulation. This, combined with the expected decrease in the issuance rate of new Ether due to the Ethereum 2.0 upgrade, could potentially make ETH a deflationary currency. Deflationary currencies typically increase in value over time as the supply decreases, which could potentially increase the value of ETH.
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