10,562 ETH Worth $24M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 10,562.66 Ether (ETH) valued at approximately $24.8 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 -13.39% yesterday, according to Glassnode.
December 08, 2023 | 6:00 pm
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The burning of 10,562.66 ETH could contribute to a deflationary pressure on Ethereum, potentially leading to an increase in its value if the demand remains constant or increases.
The burning of Ether directly reduces the circulating supply, which can lead to an increase in value if demand does not decrease. The upgrade to Ethereum 2.0 and the expected decrease in issuance rate further support the potential for a deflationary environment, which is typically positive for the price of an asset.
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