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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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.
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