7,836 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 7,836.40 Ether (ETH) valued at $17M was burned due to the EIP-1159 upgrade implemented on August 5th, 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 -8.90% 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 12, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of 7,836.40 ETH worth $17M signifies a deflationary pressure on Ethereum, with a net annualized issuance rate of -8.90%. This could lead to a positive sentiment among investors, as the supply decrease may increase the value of remaining ETH.
The burning of ETH as described in the article directly impacts the supply of Ethereum, creating a deflationary effect. With the anticipation of Ethereum 2.0 further reducing the issuance rate, the expectation is that the value of ETH could increase due to scarcity. This analysis assumes that market sentiment will view the burn positively and that demand for ETH will remain steady or increase.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100