12,104 ETH Worth $28M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 12,104.92 Ether (ETH) valued at $28.25M 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 Ethereum network currently has a 4% annual issuance rate of new Ether, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -15.94% yesterday, according to Glassnode.
December 07, 2023 | 6:00 pm
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The burning of 12,104.92 ETH could indicate a move towards a deflationary Ethereum, which may increase scarcity and potentially drive up the price of ETH in the short term.
The burning of Ether as part of the EIP-1159 upgrade reduces the overall supply, which can lead to increased scarcity and potentially higher prices if demand remains constant or increases. The anticipation of Ethereum 2.0 and a lower issuance rate could further contribute to a bullish outlook for ETH in the short term.
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