2,752 ETH Worth $6M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 2,752.96 Ether (ETH) valued at approximately $6.54 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 -0.49% for Ether, indicating a move towards a deflationary currency, especially with the anticipated Ethereum 2.0 upgrade that could further reduce the issuance rate to 0.5-1% per year.
January 22, 2024 | 6:00 pm
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POSITIVE IMPACT
The burning of 2,752.96 ETH, valued at $6.54 million, is likely to have a positive impact on the price of Ethereum in the short term due to the reduction in supply and the move towards becoming a deflationary currency.
The burning of Ether reduces the overall supply, which can lead to an increase in price if demand remains constant or increases. The transition to a deflationary model with Ethereum 2.0 could further enhance this effect. The net negative issuance rate reported by Glassnode reinforces the deflationary trend, which is typically viewed positively by investors.
CONFIDENCE 90
IMPORTANCE 85
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