1,943 ETH Worth $3M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 1,943.61 Ether (ETH) worth $3,189,165 was burned from Ethereum transactions. 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 yesterday was 0.63%.
September 18, 2023 | 6:00 pm
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The burning of Ether following the EIP-1159 upgrade could potentially decrease the supply of Ether, making it a deflationary currency. This could increase the value of Ether in the short term.
The burning of Ether removes it from circulation, decreasing its supply. If the demand remains constant or increases, this could lead to an increase in the price of Ether. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of Ether, further reducing its supply.
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