7,466 ETH Worth $14M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 7,466.47 Ether (ETH) valued at $14.49 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% 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 -8.34% yesterday.
November 17, 2023 | 6:00 pm
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7,466.47 ETH worth $14.49 million was burned, which could contribute to Ethereum becoming a deflationary asset due to the EIP-1159 upgrade and the upcoming Ethereum 2.0 changes.
The burning of ETH reduces the circulating supply, which can lead to an increase in the value of the remaining ETH if demand remains constant or increases. The upgrade to Ethereum 2.0 and the change in issuance rate further support the potential for a price increase due to scarcity.
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