4,768 ETH Worth $12M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,768.82 Ether (ETH) valued at $12.2 million 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 Ethereum network currently has a 4% annual issuance rate of new Ether, expected to drop to 0.5-1% with Ethereum 2.0, potentially making ETH deflationary. The net annualized issuance rate for Ether was -3.82% yesterday, according to Glassnode.
January 16, 2024 | 6:00 pm
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POSITIVE IMPACT
The burning of 4,768.82 ETH could contribute to a deflationary pressure on Ethereum, as the supply is reduced. With the transition to Ethereum 2.0, the issuance rate is expected to decrease further, which may support an increase in the value of ETH in the short term.
The burning of ETH directly reduces the circulating supply, which can lead to an increase in price if demand remains constant or increases. The anticipation of Ethereum 2.0 and a lower issuance rate could further drive positive sentiment in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100