More On: ETH
Over $7 billion has been taken out of Tether, prompting further concerns about the stablecoin's support
4,973 ETH Worth $14M Was Just Burned.
What happened: On Friday, a total of 4,973.72 Ether ETH worth $14,822,593 was burned from Ethereum transactions, depending on the current value of Ethereum at the time of publication ($2,980.18). When a coin or token is burned, it is delivered to an unusable wallet to be removed from circulation.
Why it matters: On August 5th, 2021, the Ethereum blockchain deployed EIP-1159, a significant upgrade. The fee mechanism was dramatically altered by this Ethereum enhancement suggestion. Each transaction now includes a variable base cost that varies based on the current demand for block space. This base fee is burned or permanently removed from circulation, thereby reducing the quantity of Ether.
Ethereum is currently issuing new Ether at a rate of 4% per year, although this is likely to drop to roughly 0.5-1 % as part of the Ethereum 2.0 upgrade. Many believe that once this occurs, the burn rate of Ether will be greater than the token's issuance, causing ETH to become a deflationary currency.
Yesterday, the net yearly issuance rate for Ether was 2.53 percent.
Glassnode gave the data.
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