7,128 ETH Worth $16M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 7,128.52 Ether (ETH) valued at $16.25M 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% per year, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -7.64% yesterday, according to Glassnode.
January 04, 2024 | 6:00 pm
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7,128.52 Ether worth $16.25M was burned, potentially indicating a move towards a deflationary model for Ethereum, especially with the upcoming 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 reduction in new Ether issuance could further contribute to a deflationary environment, potentially driving up the price of ETH in the short term.
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