11,681 ETH Worth $26M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 11,681.83 Ether (ETH) valued at $26.1 million was burned due to the EIP-1159 upgrade implemented on the Ethereum blockchain, which introduced a variable base fee for transactions that is permanently removed from circulation. This has led to a net annualized issuance rate of -15.21% for Ether, indicating a move towards a deflationary currency, especially with the upcoming Ethereum 2.0 upgrade that is expected to further reduce the issuance rate.
December 21, 2023 | 6:00 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The burning of 11,681.83 ETH, valued at $26.1 million, is expected to have a deflationary impact on the supply of Ethereum, potentially leading to an increase in the value of ETH in the short term.
The burning of a significant amount of Ether 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 a further reduction in issuance rate could also contribute to positive sentiment among investors, potentially driving up the price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100