4,758 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 4,758.45 Ether (ETH) valued at approximately $10.6 million was burned, 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% annually, 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 -3.76% yesterday, according to Glassnode.
January 05, 2024 | 6:00 pm
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4,758.45 Ether was burned, valued at $10.6M, due to EIP-1159's transaction fee model. With Ethereum 2.0, the issuance rate may decrease, potentially leading to a deflationary ETH. The net issuance rate was -3.76% yesterday.
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 potential for a lower issuance rate further supports the possibility of ETH becoming a deflationary asset, which is generally seen as positive by investors. The net negative issuance rate indicates that the burn rate is outpacing new ETH creation, which could put upward pressure on the price in the short term.
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