9,627 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 9,627.23 Ether (ETH) valued at approximately $20.17 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 -11.93% yesterday, according to Glassnode.
December 01, 2023 | 6:00 pm
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9,627.23 ETH worth $20.17 million was burned, potentially indicating a move towards a deflationary model for Ethereum, especially with the upcoming 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 potential for a deflationary issuance rate further support the possibility of a price increase in the short term.
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