4,098 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 4,098.33 Ether (ETH) worth $6,509,827 was burned from Ethereum transactions on Thursday. This follows the Ethereum blockchain's implementation of an upgrade known as EIP-1159 in August 2021, which changed the fee model and resulted in the burning of the base fee for each transaction. The net annualized issuance rate for Ether was -3.07% yesterday. 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.
September 22, 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. This, coupled with the expected decrease in the issuance rate with the Ethereum 2.0 upgrade, could potentially lead to ETH becoming a deflationary currency.
The EIP-1159 upgrade has changed the fee model for Ethereum transactions, resulting in the burning of the base fee for each transaction. This is reducing the supply of Ether. Additionally, the Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether. Both these factors could potentially lead to ETH becoming a deflationary currency, which could increase its value.
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