5,550 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 5,550.21 Ether (ETH) worth $10M was burned from Ethereum transactions on Thursday. This is a result of the Ethereum blockchain's EIP-1159 upgrade implemented on August 5th, 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 -5.23% yesterday.
November 03, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade could potentially make ETH a deflationary currency. This, along with the expected decrease in issuance rate with the Ethereum 2.0 upgrade, could impact the value of ETH.
The burning of Ether removes it from circulation, reducing the supply. The Ethereum 2.0 upgrade is expected to decrease the issuance rate of new Ether. Both these factors could potentially increase the value of ETH by making it a deflationary currency.
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