8,496 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 8,496.22 Ether (ETH) valued at approximately $17.3 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 -10.07% yesterday, according to Glassnode.
November 29, 2023 | 6:00 pm
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The burning of 8,496.22 ETH could indicate a move towards a deflationary model for Ethereum, which may increase scarcity and potentially drive up the value of ETH in the short term.
The burning of Ether reduces the overall supply, which can lead to increased scarcity and potentially higher prices if demand remains constant or increases. The implementation of EIP-1159 and the anticipation of Ethereum 2.0 suggest a structural change that could positively impact the price of ETH in the short term. However, the cryptocurrency market is volatile, and external factors could influence the price in unexpected ways.
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