5,992 ETH Worth $11M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 5,992.28 Ether (ETH) worth $11,346,139 was burned from Ethereum transactions. This is a result of the Ethereum blockchain's EIP-1159 upgrade, which changes the fee model and burns a base fee from each transaction. This reduces the supply of Ether. Ethereum is currently issuing new Ether at a rate of 4% per year, but this is expected to decrease to around 0.5-1% with the Ethereum 2.0 upgrade. The net annualized issuance rate for Ether yesterday was -5.93%.
November 08, 2023 | 6:00 pm
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The burning of Ether due to the EIP-1159 upgrade reduces the supply of Ether, potentially making ETH a deflationary currency. This could increase the value of ETH in the short term.
The EIP-1159 upgrade burns a base fee from each Ethereum transaction, reducing the supply of Ether. This, combined with the expected decrease in the issuance rate of new Ether with the Ethereum 2.0 upgrade, could make ETH a deflationary currency. As supply decreases, the value of ETH could increase in the short term.
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