5,068 ETH Worth $11M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 5,068.77 Ether (ETH) valued at approximately $11.48 million was burned due to the EIP-1159 upgrade implemented on the Ethereum blockchain, which introduced a variable base fee for transactions that is permanently removed from circulation. This has led to a net annualized issuance rate of -4.30% for Ether, indicating a deflationary trend, especially with the anticipated Ethereum 2.0 upgrade that could further reduce the issuance rate to 0.5-1% per year.
January 09, 2024 | 6:00 pm
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POSITIVE IMPACT
The burning of 5,068.77 ETH could contribute to a deflationary pressure on Ethereum, potentially increasing its value as the supply diminishes. The anticipation of Ethereum 2.0 may also create positive sentiment among investors.
The burning of Ether reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The upgrade to Ethereum 2.0 is expected to further decrease the issuance rate, which could enhance the deflationary aspect of Ethereum and potentially drive up its price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100