6,827 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 6,827.95 Ether (ETH) valued at $17M was burned due to the EIP-1159 upgrade implemented on August 5, 2021, which introduced a variable base fee for transactions that is permanently removed from circulation. This has led to a net annualized issuance rate of -7.20% for Ether, indicating a deflationary trend, especially with the upcoming Ethereum 2.0 upgrade that is expected to further reduce the issuance rate to 0.5-1% per year.
January 12, 2024 | 6:00 pm
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The burning of 6,827.95 ETH worth $17M signifies a deflationary pressure on Ethereum, which could lead to a potential increase in the value of ETH as the supply diminishes.
The burning of Ether reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The transition to Ethereum 2.0 and the expected decrease in issuance rate could further exacerbate this deflationary pressure, making the asset more valuable in the short term.
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