12,559 ETH Worth $26M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 12,559.96 Ether (ETH) valued at $26.9 million was burned, permanently removing it from circulation. This is a result of the EIP-1159 upgrade implemented on August 5, 2021, which introduced a variable base fee for transactions that is burned. The Ethereum network currently has a 4% annual issuance rate of new Ether, 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 -16.66% yesterday.
December 19, 2023 | 6:00 pm
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The burning of 12,559.96 ETH could indicate a move towards a deflationary Ethereum, potentially increasing the value of ETH as supply decreases.
The burning of Ether reduces the overall supply, which can lead to an increase in value if demand remains constant or increases. The implementation of EIP-1159 and the anticipation of Ethereum 2.0 suggest a deflationary model that could further drive up the price of ETH in the short term.
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