1,262 ETH Worth $1M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 1,262.51 Ether (ETH) worth $1,991,355 was burned from Ethereum transactions on Sunday. This follows the Ethereum blockchain's upgrade known as EIP-1159, which changed the fee model and includes a variable base fee that is burned, permanently removing it from circulation. 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.
October 16, 2023 | 6:00 pm
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The burning of Ether reduces its supply, potentially increasing its value. The Ethereum 2.0 upgrade is expected to further decrease the issuance rate, making ETH a deflationary currency.
The burning of Ether removes it from circulation, reducing the supply. According to the law of supply and demand, if demand remains constant, a decrease in supply leads to an increase in price. The Ethereum 2.0 upgrade is expected to further decrease the issuance rate, which could make ETH a deflationary currency, potentially increasing its value further.
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