9,635 ETH Worth $21M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 9,635.34 Ether (ETH) valued at $21.49 million 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 -11.86% for Ether, with expectations that the Ethereum 2.0 upgrade will further reduce the issuance rate and potentially make ETH a deflationary currency.
December 15, 2023 | 6:00 pm
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POSITIVE IMPACT
The burning of 9,635.34 ETH could contribute to a decrease in the available supply of Ether, potentially leading to upward price pressure in the short term as the Ethereum 2.0 upgrade approaches.
The burning of Ether directly reduces the circulating supply, which can lead to an increase in price if demand remains constant or increases. The anticipation of Ethereum 2.0 and a further reduction in issuance rate could add to the positive sentiment, although the actual impact on price will depend on a variety of market factors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100