7,771 ETH Worth $15M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 7,771.17 Ether (ETH) valued at approximately $15.65 million 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. The current issuance rate of new Ether is 4% annually, expected to drop to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -8.86% yesterday, according to Glassnode.
November 15, 2023 | 6:00 pm
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The burning of 7,771.17 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, which may lead to a positive impact on the price of ETH in the short term.
The burning of ETH directly reduces the circulating supply, which can lead to an increase in price if demand remains constant or increases. The anticipation of Ethereum 2.0 and its potential to further decrease the issuance rate adds to the positive sentiment. The net annualized issuance rate being negative indicates that the burn rate is outpacing the issuance, which is typically a bullish signal for the asset's value.
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