1,362 ETH Worth $1M Was Just Burned By Benzinga
© Reuters. 1,362 ETH Worth $1M Was Just Burned
What happened: On Sunday a total of 1,362.64 Ether (CRYPTO: ETH) worth $1,820,865, based on the current value of at time of publication ($1,336.28), was burned from Ethereum transactions. Burning is when a coin or token is sent to an unusable wallet to remove it from circulation.
Why it matters: On August 5th, 2021, the Ethereum blockchain implemented an important upgrade known as EIP-1159. This Ethereum improvement proposal changed the fee model drastically. Now each transaction includes a variable base fee that adjusts according to the current demand for block space. This base fee is burned, or permanently removed from circulation, lowering the supply of Ether forever.
Ethereum is currently issuing new Ether at a rate of 4% per year, although 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 0.82%.
Data provided by Glassnode
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read More: 1,362 ETH Worth $1M Was Just Burned By Benzinga
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.