2,997 ETH Worth $5M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 2,997.83 Ether (ETH) worth $5,390,706 was burned from Ethereum transactions. This follows the Ethereum blockchain's upgrade known as EIP-1159, which changed the fee model and burns a 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 yesterday was -1.00%.
October 30, 2023 | 6:00 pm
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The burning of Ether, following the EIP-1159 upgrade, is expected to decrease the supply of Ether, potentially leading to a price increase. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether.
The burning of Ether removes it from circulation, decreasing the supply. If demand remains constant or increases, this could lead to a price increase. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of new Ether, further decreasing the supply.
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