2,567 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 2,567.75 Ether (ETH) worth approximately $6M was burned on Monday, 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% per year, 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 -0.20% yesterday.
January 02, 2024 | 6:00 pm
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2,567.75 ETH worth $6M was burned, potentially impacting the supply and value of Ethereum. The EIP-1159 upgrade and upcoming Ethereum 2.0 could make ETH deflationary, affecting its price.
The burning of ETH 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 reduction in new ETH issuance could further contribute to a deflationary pressure on the currency, potentially driving up its price in the short term.
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