1,626 ETH Worth $2M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 1,626.65 Ether (ETH) worth $2,523,437 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's EIP-1159 upgrade, which changes the fee model and burns a base fee from each transaction, permanently removing it from circulation. This is expected to make ETH a deflationary currency once the Ethereum 2.0 upgrade decreases the issuance rate of new Ether to around 0.5-1% per year.
October 11, 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 term.
The EIP-1159 upgrade burns a base fee from each Ethereum transaction, permanently removing it from circulation. This, combined with the expected decrease in the issuance rate of new Ether due to the Ethereum 2.0 upgrade, could make ETH a deflationary currency. Deflationary currencies can increase in value over time as the supply decreases, which could potentially increase the value of ETH in the long term.
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