10,117 ETH Worth $23M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 10,117.98 Ether (ETH) valued at $23.1M was burned due to the EIP-1159 upgrade implemented on August 5, 2021, which introduced a variable base fee for transactions that is permanently removed from circulation. This has led to a net annualized issuance rate of -12.68% for Ether, indicating a deflationary trend, especially with the upcoming Ethereum 2.0 upgrade that is expected to further reduce the issuance rate to 0.5-1% per year.
December 05, 2023 | 6:00 pm
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POSITIVE IMPACT
10,117.98 Ether worth $23.1M was burned, potentially indicating a move towards a deflationary currency as the Ethereum 2.0 upgrade approaches, which could decrease the issuance rate and increase the burn rate.
The burning of Ether reduces the overall supply, which can lead to an increase in the value of the remaining Ether if demand remains constant or increases. The transition to Ethereum 2.0 and the expected reduction in issuance rate could further enhance this effect, making the news highly relevant and important for investors. The score reflects a positive short-term impact on the price of ETH, assuming market conditions do not change significantly.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100