8,320 ETH Worth $16M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 8,320.17 Ether (ETH) valued at approximately $16.9 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 -9.74% yesterday, according to Glassnode.
November 22, 2023 | 6:00 pm
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8,320.17 Ether worth $16.9M was burned, potentially leading to a deflationary scenario for ETH as the Ethereum 2.0 upgrade approaches, which could decrease the annual issuance rate.
The burning of Ether reduces the overall supply, which can lead to an increase in the value of the remaining ETH 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.
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