3,955 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 3,955.76 Ether (ETH) valued at approximately $9.29 million was burned, permanently removing it from circulation. This event follows the EIP-1159 upgrade implemented on the Ethereum blockchain 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 -2.49% yesterday, according to Glassnode.
December 27, 2023 | 6:00 pm
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3,955.76 Ether worth $9.29 million was burned, potentially leading to a deflationary scenario for Ethereum as the issuance rate is expected to decrease with the Ethereum 2.0 upgrade.
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 new Ether issuance rate could further contribute to a deflationary pressure on the currency, potentially increasing its value in the short term. The reported net annualized issuance rate of -2.49% supports the deflationary narrative, which may positively impact investor sentiment and the price of ETH.
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