7,005 ETH Worth $14M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 7,005.47 Ether (ETH) valued at approximately $14.75 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% per year, 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 -7.57% yesterday, according to Glassnode.
November 24, 2023 | 6:00 pm
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7,005.47 ETH worth $14.75 million was burned, potentially leading to a deflationary scenario for Ethereum as the issuance rate is expected to decrease with the Ethereum 2.0 upgrade.
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 transition to Ethereum 2.0 and the expected decrease in new Ether issuance could further contribute to a deflationary pressure on ETH, making it more valuable. However, the cryptocurrency market is volatile, and other factors could also influence the price.
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