7,000 ETH Worth $15M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 7,000.75 Ether (ETH) valued at approximately $15.5 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% 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 -7.56% yesterday.
December 04, 2023 | 6:00 pm
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7,000.75 ETH burned, reducing supply and potentially leading to deflationary pressure on Ethereum as the burn rate may surpass new issuance post Ethereum 2.0 upgrade.
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 transition to Ethereum 2.0 and the expected decrease in new Ether issuance could further exacerbate this effect, making ETH a deflationary asset in the long term. The short term impact is likely positive due to the perception of scarcity and the recent data showing a negative issuance rate.
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