4,661 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 4,661.78 Ether (ETH) worth approximately $10.73 million was burned, permanently removing it from circulation. This action is part of the Ethereum blockchain's EIP-1159 upgrade implemented on August 5, 2021, which introduced a variable base fee for transactions that is burned. The current issuance rate of new Ether is 4% annually, expected to decrease to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -3.58% yesterday.
February 01, 2024 | 6:00 pm
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4,661.78 Ether worth $10.73 million was burned, potentially impacting the deflationary nature of ETH with the Ethereum 2.0 upgrade.
The burning of Ether reduces the overall supply, which, combined with the anticipated decrease in new Ether issuance rate due to the Ethereum 2.0 upgrade, could lead to ETH becoming a deflationary currency. This reduction in supply, assuming demand remains constant or increases, could potentially lead to an increase in the value of ETH in the short term.
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