5,679 ETH Worth $13M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 5,679.23 Ether (ETH) valued at approximately $13.3 million was burned as part of the Ethereum network's transaction process. This is a result of the EIP-1159 upgrade implemented on August 5th, 2021, which introduced a variable base fee for transactions that is permanently removed from circulation. The current annual issuance rate of new Ether is 4%, but with the upcoming Ethereum 2.0 upgrade, it is expected to drop to 0.5-1%, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -5.24% yesterday, according to Glassnode.
January 31, 2024 | 6:00 pm
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5,679.23 Ether was burned, valued at $13.3M, due to EIP-1159 upgrade. With Ethereum 2.0, the issuance rate may drop, potentially making ETH deflationary. The net issuance rate was -5.24% yesterday.
The burning of Ether reduces the overall supply, which can lead to an increase in the value of the remaining ETH if demand remains constant or increases. The transition to Ethereum 2.0 and the expected decrease in issuance rate could further contribute to a deflationary scenario for ETH, making it more scarce and potentially driving up its price in the short term.
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