3,219 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 3,219.96 Ether (ETH) valued at $7.19 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 -1.26% for Ether, indicating a move towards a deflationary currency, especially with the anticipated Ethereum 2.0 upgrade that could further reduce the issuance rate.
January 24, 2024 | 6:00 pm
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The burning of 3,219.96 ETH worth $7.19 million signifies a move towards Ethereum becoming a deflationary currency, which could potentially increase the value of ETH in the short term.
The burning of Ether as a result of EIP-1159 reduces the overall supply of the cryptocurrency, which can lead to an increase in its value if demand remains constant or increases. With the net issuance rate being negative and the anticipation of Ethereum 2.0 potentially further decreasing the issuance rate, the short-term impact on ETH's price could be positive as the market may speculate on its scarcity.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100