10,709 ETH Worth $22M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 10,709.53 Ether (ETH) valued at $22.4 million was burned, permanently removing it from circulation. This is a result of the EIP-1159 upgrade implemented on August 5, 2021, which introduced a variable base fee for transactions that is burned. The current issuance rate of new Ether is 4% annually, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -13.73% yesterday, according to Glassnode.
November 10, 2023 | 6:00 pm
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The burning of 10,709.53 ETH could indicate a move towards a deflationary Ethereum, which may increase scarcity and potentially drive up the price of ETH in the short term.
The burning of Ether reduces the overall supply, which can lead to increased scarcity and potentially higher prices if demand remains constant or increases. The implementation of EIP-1159 and the anticipation of Ethereum 2.0 suggest a structural change that could positively impact the value of ETH.
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