6,712 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 6,712.08 Ether (ETH) valued at $17M was burned due to EIP-1159, which introduced a fee model where a base fee per transaction is permanently removed from circulation. This event contributes to Ethereum's transition towards becoming a deflationary currency, especially with the anticipated Ethereum 2.0 upgrade that is expected to reduce the issuance rate from 4% to 0.5-1% per year. The net annualized issuance rate for Ether was -7.01% yesterday.
January 15, 2024 | 6:00 pm
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The burning of 6,712 ETH reduces the circulating supply, potentially leading to an increase in the value of Ethereum as it moves towards becoming a deflationary asset with the upcoming Ethereum 2.0 upgrade.
The burning of Ether directly reduces the circulating supply, which can lead to an increase in price if demand remains constant or increases. The transition to Ethereum 2.0 and the reduction in issuance rate further support the potential for price appreciation. However, the cryptocurrency market is volatile, and external factors can influence prices.
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