Over the week, a total of 5,133.77 Ether worth $13,914,414, was burned from Ethereum transactions, based on data from the Ethereum burn tracker, $6.25 billion in ETH has been burned so far, being pulled out of circulation permanently.
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Burning is when a coin or token is sent to an unusable wallet to remove it from circulation.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 2.44%.
