2,561 ETH Worth $5M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 2,561.44 Ether (ETH) valued at approximately $5.9 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 -0.18% for Ether, indicating a move towards a deflationary currency, especially with the anticipated Ethereum 2.0 upgrade that is expected to further reduce the issuance rate.
January 29, 2024 | 6:00 pm
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The burning of 2,561.44 ETH worth $5.9M signifies a deflationary trend for Ethereum, potentially making ETH more scarce and valuable. The net issuance rate of -0.18% suggests a decrease in supply which could lead to a price increase in the short term.
The burning of ETH as a result of the EIP-1159 upgrade is a significant event that directly affects the supply of Ethereum. A reduction in supply, assuming demand remains constant or increases, typically leads to a price increase. The move towards Ethereum 2.0 and a further reduction in issuance rate reinforces the deflationary aspect, which is generally viewed positively by investors and could lead to a short-term price increase for ETH.
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