9,205 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 9,205.97 Ether (ETH) valued at approximately $20 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 Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -11.17% yesterday, according to Glassnode.
December 13, 2023 | 6:00 pm
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9,205.97 ETH worth $20M was burned, potentially leading to a deflationary scenario for Ethereum as the burn rate may exceed new Ether issuance 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 Ether if demand remains constant or increases. The transition to Ethereum 2.0 and the expected decrease in new Ether issuance rate could further contribute to a deflationary pressure on the currency, potentially increasing its value in the short term.
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