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What happened:<\/strong> On Sunday a total of 4,336.64 Ether (CRYPTO: ETH<\/a>) worth $11,210,571, based on the current value of Ethereum<\/strong> at time of publication ($2,585.08), was burned from Ethereum transactions. Burning<\/strong> is when a coin or token is sent to an unusable wallet to remove it from circulation.<\/p>\n Why it matters:<\/strong> 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.<\/p>\n See Also:<\/strong> How to Buy Ethereum<\/strong><\/a> & When Will Ethereum 2.0 Launch<\/strong><\/a><\/p>\n 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\u2019s issuance, causing ETH to become a deflationary currency.<\/p>\n The net annualized issuance rate for Ether yesterday was 2.72%.<\/p>\n Data provided by Glassnode<\/strong><\/a><\/p>\n<\/p><\/div>\n