5,783 ETH Worth $9M Was Just Burned

Benzinga Insights

16 Mar 2023 6:00 PM

What happened: On Wednesday a total of 5,783.54 Ether (CRYPTO: ETH) worth $9,615,593, based on the current value of Ethereum at time of publication ($1,662.58), was burned from Ethereum transactions....

  • On Wednesday, 5,783.54 Ether worth $9,615,593 was burned from Ethereum transactions.
  • Burning is when a coin or token is sent to an unusable wallet to remove it from circulation.
  • The Ethereum blockchain implemented an upgrade known as EIP-1159 on August 5th, 2021, which changed the fee model drastically.
  • Each transaction now includes a variable base fee that adjusts according to the current demand for block space, and this base fee is burned, lowering the supply of Ether forever.
  • Ethereum is currently issuing new Ether at a rate of 4% per year, but this is expected to decrease to around 0.5-1% as a part of the Ethereum 2.0 upgrade.
  • Once this occurs, many speculate that the burn rate of Ether will be greater than the token's issuance, causing ETH to become a deflationary currency.
  • The net annualized issuance rate for Ether yesterday was -8.11%.

The article provides informative and neutral information about the burning of Ether and the impact of the EIP-1159 upgrade on the Ethereum blockchain.

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Related Questions

What is burning in cryptocurrency?
What is the EIP-1159 upgrade and how does it affect the Ethereum blockchain?
What is the current rate of Ether issuance and how is it expected to change with the Ethereum 2.0 upgrade?
What is the potential impact of the burn rate of Ether being greater than its issuance?
What was the net annualized issuance rate for Ether yesterday?

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