6,928 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 6,928.94 Ether (ETH) valued at $17.5 million was burned due to EIP-1159, which introduced a fee model where a base fee per transaction is permanently removed from circulation. This process contributes to Ethereum's deflationary mechanism, especially with the upcoming Ethereum 2.0 upgrade that is expected to reduce the issuance rate of new Ether significantly.
January 17, 2024 | 6:00 pm
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The burning of 6,928.94 ETH worth $17.5 million signifies a deflationary event for Ethereum, potentially leading to a positive impact on the price of ETH in the short term due to reduced supply.
The burning of Ether reduces the overall 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.
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