4,398 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 4,398.82 Ether (ETH) valued at approximately $10.7 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 -3.21% yesterday.
January 10, 2024 | 6:00 pm
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4,398.82 Ether worth $10.7 million was burned, potentially leading to ETH becoming a deflationary asset as the Ethereum 2.0 upgrade looms, which could decrease the issuance rate.
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 pressure on the asset, potentially increasing its value in the short term.
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