4,378 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 4,378.14 Ether (ETH) valued at $9M 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 Ethereum network currently has a 4% annual issuance rate of new Ether, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -3.22% yesterday, according to Glassnode.
November 20, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of 4,378.14 ETH could contribute to a deflationary pressure on Ethereum, especially with the upcoming Ethereum 2.0 upgrade which may further reduce the issuance rate. This could potentially increase the value of ETH in the short term.
The burning of Ether reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The anticipation of Ethereum 2.0 and a lower issuance rate could further drive positive sentiment in the short term, as investors may expect a deflationary effect to bolster the value of ETH.
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