7,311 ETH Worth $18M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 7,311.65 Ether (ETH) valued at $18M 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 -7.97% for Ether, indicating a move towards a deflationary currency as the burn rate may exceed new Ether issuance after the Ethereum 2.0 upgrade.
January 19, 2024 | 6:00 pm
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The burning of 7,311.65 ETH worth $18M and the net annualized issuance rate of -7.97% suggest a deflationary trend for Ethereum, which could increase scarcity and potentially drive up the price of ETH in the short term.
The burning of Ether reduces the overall supply, which can lead to increased scarcity and potentially higher prices if demand remains constant or increases. The move towards a deflationary model with Ethereum 2.0 could further enhance this effect. However, the cryptocurrency market is volatile, and external factors could influence the price in unforeseen ways.
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