8,781 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 8,781.29 Ether (ETH) valued at approximately $20.45 million 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% annually, 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 -10.44% yesterday, according to Glassnode.
December 22, 2023 | 6:00 pm
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8,781.29 ETH worth $20M was burned, potentially impacting the supply and value of Ethereum. The burn rate, coupled with the upcoming Ethereum 2.0 upgrade, could lead to a deflationary scenario for ETH.
The burning of ETH reduces the circulating supply, which can create upward pressure on the price if demand remains constant or increases. The transition to Ethereum 2.0 and a potential decrease in new ETH issuance could further contribute to a deflationary environment, making existing ETH more valuable. The reported negative net issuance rate indicates that the burn rate exceeds new ETH creation, which is bullish for the price in the short term.
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