8,122 ETH Worth $21M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 8,122.32 Ether (ETH) valued at $21.1M 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% annually, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -9.32% yesterday.
January 11, 2024 | 6:00 pm
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8,122.32 Ether worth $21.1M was burned, potentially leading to a deflationary ETH as the Ethereum 2.0 upgrade approaches. The net annualized issuance rate for Ether was -9.32%.
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 deflationary issuance rate further support the possibility of a price increase in the short term.
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