6,902 ETH Worth $14M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 6,902.89 Ether (ETH) worth approximately $14.3 million was burned on Monday, 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 -7.42% yesterday, according to Glassnode.
November 28, 2023 | 6:00 pm
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6,902.89 ETH worth $14M was burned, potentially leading to a deflationary scenario for Ethereum as the upgrade EIP-1159 continues to take effect.
The burning of Ether reduces the overall supply, which could lead to an increase in the value of ETH if demand remains constant or increases. The upgrade to Ethereum 2.0 is expected to further reduce the issuance rate, which may enhance the deflationary effect. This news is highly relevant and important to ETH investors as it directly affects the supply and potential value of the asset. The confidence score reflects the historical tendency for asset prices to increase as supply diminishes, assuming stable or growing demand.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100