On Wednesday, a total of 5,879.90 Ether worth a staggering $13,871,399 based on Ethereum’s current market value ($2,359.12) was permanently burned from transactions. Ethereum burn is where a coin or token is sent to an address that remains unusable, effectively reducing supply.
The main reason for this activity is a crucial upgrade, known as EIP-1159. This Ethereum Improvement Proposal modified the fee structure. Henceforth, each transaction uses a base fee proportional to demand for block space – the fee is then burned, removing it from circulation.
It is important to know that Ethereum’s generation rate settles at an average of 4% annually, but it is supposed to degrade to either 0.5% or 1% as part of the Ethereum 2.0 peer-to-peer upgrade. So far, the daily net with Ether issuance was seen at rate of -5.65%, as per data supplied by Glassnode.
