5,963 ETH Worth $12M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 5,963.58 Ether (ETH) valued at $12.4 million was burned due to the EIP-1159 upgrade implemented on the Ethereum blockchain, which introduced a variable base fee for transactions that is permanently removed from circulation. This event contributes to the deflationary aspect of Ethereum, especially in anticipation of the Ethereum 2.0 upgrade, which is expected to further reduce the issuance rate of new Ether.
November 13, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of 5,963.58 ETH reduces the overall supply, potentially leading to an increase in the value of Ethereum if demand remains constant or increases.
The burning of Ether directly impacts its supply, creating a deflationary pressure that can lead to an increase in price. The anticipation of Ethereum 2.0 and a lower issuance rate further supports this potential price increase. However, the crypto market's volatility and external factors could affect this outcome.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100