2,994 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 2,994.09 Ether (ETH) valued at approximately $6.93 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 Ethereum 2.0, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -0.90% yesterday, according to Glassnode.
January 01, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
The burning of 2,994.09 ETH could contribute to a deflationary pressure on the supply of Ethereum, potentially leading to an increase in the value of ETHUSD in the short term.
The burning of Ether directly reduces the circulating supply, which can lead to an increase in the price if demand remains constant or increases. The transition to Ethereum 2.0 and the potential for a deflationary supply further support a positive outlook for ETHUSD in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100