5,689 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 5,689.05 Ether (ETH) worth $10,171,628 was burned from Ethereum transactions. 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, lowering the supply of Ether. 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 yesterday was -5.50%.
October 25, 2023 | 6:00 pm
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The burning of Ether following the EIP-1159 upgrade is expected to lower the supply of Ether, potentially increasing its value. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether, further impacting the supply-demand dynamics.
The burning of Ether removes it from circulation, reducing the overall supply. This, combined with the expected decrease in the issuance rate of new Ether due to the Ethereum 2.0 upgrade, could lead to a supply-demand imbalance. If the demand for Ether remains strong or increases, this could potentially drive up the price of Ether.
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