2,578 ETH Worth $4M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 2,578.57 Ether (ETH) worth $4,283,575 was burned from Ethereum transactions on Wednesday. This is a result of the Ethereum blockchain's EIP-1159 upgrade implemented on August 5th, 2021, 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 -0.41% yesterday.
September 28, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially lead to ETH becoming a deflationary currency. This, combined with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could impact the value of ETH.
The EIP-1159 upgrade burns a variable base fee from each Ethereum transaction, effectively reducing the supply of Ether. With the upcoming Ethereum 2.0 upgrade, the issuance rate of new Ether is expected to decrease. These factors could potentially make Ether a deflationary currency, which could increase its value.
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