5,879 ETH Worth $13M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 5,879.90 Ether (ETH) valued at $13,871,399 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 -5.65% for Ether, indicating a deflationary trend, especially with the anticipated Ethereum 2.0 upgrade that could further reduce the issuance rate to 0.5-1% per year.
December 28, 2023 | 6:00 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The burning of 5,879.90 ETH could indicate a deflationary trend for Ethereum, potentially making ETH more scarce and valuable. The anticipation of Ethereum 2.0 could further contribute to this scarcity.
The burning of ETH as part of the EIP-1159 upgrade reduces the overall supply, which can lead to an increase in the value of ETH if demand remains constant or increases. The transition to Ethereum 2.0 is expected to further decrease the issuance rate, which could enhance the deflationary aspect of Ethereum and potentially increase its value in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100