12,083 ETH Worth $27M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 12,083.66 Ether (ETH) valued at $27.4 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% 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 -15.91% yesterday, according to Glassnode.
December 06, 2023 | 6:00 pm
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12,083.66 Ether worth $27.4 million was burned, which could lead to ETH becoming a deflationary asset as the burn rate may exceed the issuance rate after the Ethereum 2.0 upgrade.
The burning of Ether reduces the overall supply, which can lead to an increase in the value of the remaining ETH if demand remains constant or increases. The upgrade to Ethereum 2.0 and the change in the issuance rate could further exacerbate this effect, making ETH a deflationary asset. This expectation could drive positive sentiment in the short term, potentially increasing the price of ETH.
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