4,597 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,597.61 Ether (ETH) valued at approximately $10M 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 -3.55% yesterday.
December 26, 2023 | 6:00 pm
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4,597.61 Ether was burned, valued at $10M, due to EIP-1159 upgrade. This could lead to ETH becoming deflationary with the Ethereum 2.0 upgrade, as the issuance rate is expected to decrease significantly.
The burning of Ether 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 expected decrease in issuance rate further support the potential for ETH to appreciate in value in the short term.
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