5,198 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 5,198.18 Ether (ETH) valued at approximately $10.46 million was burned, permanently removing it from circulation. This event is significant due to the Ethereum network's EIP-1159 upgrade, which introduced a variable base fee for transactions that is burned. The Ethereum 2.0 upgrade is expected to further reduce the annual issuance rate of Ether, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -4.59% yesterday, according to Glassnode.
November 27, 2023 | 6:00 pm
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5,198.18 Ether (ETH) worth $10.46 million was burned, potentially indicating a move towards ETH becoming a deflationary currency. The Ethereum network's EIP-1159 upgrade and the upcoming Ethereum 2.0 are pivotal in this change, with the net issuance rate currently at -4.59%.
The burning of a significant amount of Ether and the negative issuance rate are strong indicators of a shift towards a deflationary model for Ethereum. This could increase the scarcity of ETH, potentially driving up its value in the short term as investors anticipate a decrease in supply.
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