7,635 ETH Worth $18M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 7,635.20 Ether (ETH) valued at $18.85 million was burned due to the EIP-1159 upgrade implemented on the Ethereum blockchain, which introduced a variable base fee for transactions that is permanently removed from circulation. This has led to a net annualized issuance rate of -8.51% for Ether, indicating a deflationary trend, especially with the upcoming Ethereum 2.0 upgrade expected to further reduce the issuance rate.
January 18, 2024 | 6:00 pm
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The burning of 7,635.20 ETH, valued at $18.85 million, and the resulting negative issuance rate of -8.51% suggest a deflationary trend for Ethereum, which could lead to an increase in the value of ETH in the short term.
The burning of Ether reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The negative issuance rate further supports a potential price increase. However, the cryptocurrency market is volatile, and external factors could influence the price in unexpected ways.
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