2,972 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
A total of 2,972.38 Ether (ETH) worth approximately $7 million was burned on Monday, permanently removing it from circulation. This is a result of the EIP-1159 upgrade implemented on August 5th, 2021, which introduced a variable base fee for transactions that is burned. The current issuance rate of new Ether is 4% per year, expected to drop to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -0.84% yesterday.
January 30, 2024 | 6:00 pm
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POSITIVE IMPACT
The burning of 2,972.38 ETH could contribute to a decrease in the available supply of Ethereum, potentially leading to an increase in its value if demand remains constant or increases.
The burning of Ether directly affects the supply of ETHUSD. With a reduced supply and the anticipation of Ethereum 2.0 potentially leading to a deflationary scenario, there is a likelihood of increased scarcity and potential price appreciation in the short term, assuming demand remains stable or grows.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100