9,915 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 9,915.61 Ether (ETH) valued at $20,130,574 was burned, permanently removing it from circulation. This is a result of the EIP-1159 upgrade implemented on August 5th, 2021, which introduced a variable base fee for transactions that is burned. Ethereum's current issuance rate is 4% per year, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -12.40% yesterday, according to Glassnode.
November 14, 2023 | 6:00 pm
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The burning of 9,915.61 ETH could contribute to a deflationary pressure on Ethereum, potentially increasing its value as the supply diminishes. The upgrade to Ethereum 2.0 is expected to further reduce the issuance rate.
The burning of ETH as part of the EIP-1159 upgrade is a significant event that directly affects the supply of Ethereum. A reduction in supply, all else being equal, can lead to an increase in price. The anticipation of Ethereum 2.0 and its potential to further decrease the issuance rate adds to the deflationary narrative, which could be bullish for ETH in the short term.
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