11,640 ETH Worth $26M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 11,640.44 Ether (ETH) valued at $26M 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% per year, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -15.16% yesterday, according to Glassnode.
December 20, 2023 | 6:00 pm
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11,640.44 ETH worth $26M was burned, which could lead to ETH becoming a deflationary asset as the burn rate may surpass new issuance with Ethereum 2.0. The net issuance rate was -15.16% recently.
The burning of ETH reduces the overall supply, which can lead to an increase in the value of the remaining ETH if demand remains constant or increases. The transition to Ethereum 2.0 and the potential for a deflationary issuance rate further support the possibility of a price increase in the short term. However, the cryptocurrency market is volatile, and external factors can influence prices.
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