4,548 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 4,548.49 Ether (ETH) valued at approximately $10.37 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 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 -3.47% yesterday, according to Glassnode.
December 25, 2023 | 6:00 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
4,548.49 Ether was burned, valued at $10.37 million, due to EIP-1159 upgrade, which could lead to ETH becoming deflationary as the burn rate may exceed new issuance with Ethereum 2.0.
The burning of Ether reduces the overall supply, which can lead to increased scarcity and potentially higher prices if demand remains constant or increases. The upgrade to Ethereum 2.0 and the change in issuance rate are significant factors that could contribute to a deflationary environment for ETH, making it more valuable. The net negative issuance rate reported by Glassnode reinforces this potential outcome.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100