4,010 ETH Worth $8M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 4,010.57 Ether (ETH) worth approximately $8.9 million was burned on Tuesday, 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 -2.55% yesterday.
January 03, 2024 | 6:00 pm
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4,010.57 ETH worth $8.9M was burned, potentially impacting the supply and value of Ethereum. The EIP-1159 upgrade and upcoming Ethereum 2.0 could make ETH deflationary.
The burning of ETH reduces the overall supply, which can lead to an increase in value if demand remains constant or increases. The transition to Ethereum 2.0 and the reduction in new Ether issuance could further contribute to a deflationary pressure on ETH, making it more valuable. However, the cryptocurrency market is volatile, and other factors could also influence the price.
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