8,153 ETH Worth $16M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 8,153.51 Ether (ETH) valued at $16.6 million was burned, permanently removing it from circulation. This is a result of the EIP-1159 upgrade implemented on August 5, 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 Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -9.50% yesterday, according to Glassnode.
November 30, 2023 | 6:00 pm
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8,153.51 Ether was burned, valued at $16.6 million, potentially leading to a deflationary scenario for Ethereum as the upgrade EIP-1159 continues to impact the supply. The net issuance rate was -9.50% yesterday.
The burning of Ether reduces the circulating supply, which can lead to an increase in the value of the remaining Ether if demand remains constant or increases. The implementation of EIP-1159 and the anticipation of Ethereum 2.0 suggest a shift towards a deflationary model, which is typically seen as a positive development for the value of a cryptocurrency. The reported negative net issuance rate reinforces the deflationary narrative, which could increase investor interest and potentially drive up the price in the short term.
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