3,902 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 3,902.27 Ether (ETH) worth $6,328,397 was burned from Ethereum transactions on Thursday. 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 -2.80% yesterday.
September 15, 2023 | 6:00 pm
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The burning of Ether from transactions, following the EIP-1159 upgrade, is expected to lower the supply of Ether, potentially increasing its value. The net annualized issuance rate for Ether was -2.80% yesterday.
The burning of Ether from transactions reduces the supply of Ether in circulation. This, combined with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could lead to an increase in the value of Ether due to supply-demand dynamics. The net annualized issuance rate being negative indicates that more Ether is being burned than issued, which could further increase its value.
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