6,283 ETH Worth $14M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 6,283.44 Ether (ETH) valued at approximately $14.45 million was burned due to the EIP-1159 upgrade implemented on the Ethereum blockchain. This upgrade introduced a variable base fee for transactions that is burned, reducing the supply of Ether. 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 -6.27% yesterday.
January 08, 2024 | 6:00 pm
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6,283.44 Ether was burned, valued at $14.45M, due to EIP-1159 upgrade, potentially making ETH a deflationary asset as issuance rate is expected to decrease with Ethereum 2.0.
The burning of Ether reduces the overall supply, which can lead to an increase in the value of the remaining Ether if demand remains constant or increases. The transition to Ethereum 2.0 and the expected decrease in new Ether issuance could further contribute to a deflationary pressure on the cryptocurrency, potentially increasing its value in the short term.
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