10,162 ETH Worth $23M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 10,162.24 Ether (ETH) valued at $23.4 million was burned due to the EIP-1159 upgrade implemented on August 5, 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 -12.74% 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 14, 2023 | 6:00 pm
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The burning of 10,162.24 ETH, valued at $23.4 million, contributes to a deflationary pressure on the Ethereum currency. With the Ethereum 2.0 upgrade on the horizon, the expectation of a reduced issuance rate could lead to a positive sentiment among investors, potentially driving up the price of ETH in the short term.
The burning of ETH reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The anticipation of Ethereum 2.0 and its potential to further decrease the issuance rate creates a bullish narrative for Ethereum in the short term. However, the volatile nature of the cryptocurrency market means that other factors could also influence the price.
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