2,041 ETH Worth $3M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 2,041.98 Ether (ETH) worth $3,287,042 was burned from Ethereum transactions on Thursday. This follows the implementation of the Ethereum improvement proposal EIP-1159 in August 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 0.59% yesterday.
October 20, 2023 | 6:00 pm
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The burning of Ether from transactions, as a result of the EIP-1159 upgrade, is expected to lower the supply of Ether, potentially leading to a price increase. The upcoming Ethereum 2.0 upgrade could further decrease the issuance rate, making ETH a deflationary currency.
The burning of Ether removes it from circulation, reducing the supply. If demand remains constant or increases, this could lead to a price increase. The upcoming Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether, which could further increase the price if the burn rate exceeds the issuance rate.
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