4,751 ETH Worth $8M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,751.64 Ether (ETH) worth $8,551,772 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, 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. The net annualized issuance rate for Ether yesterday was -3.93%.
October 31, 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 leading to a deflationary currency. This could impact the price of ETH in the short term.
The burning of Ether reduces its supply, which could increase its price if demand remains constant or increases. The Ethereum 2.0 upgrade is also expected to decrease the issuance rate of Ether, further reducing its supply. This could make Ether a deflationary currency, which could increase its price.
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