4,642 ETH Worth $10M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 4,642.37 Ether (ETH) worth approximately $10.66 million was burned, permanently removing it from circulation. This action is part of the Ethereum blockchain's EIP-1159 upgrade, which introduced a variable base fee for transactions that is burned. The Ethereum network is currently issuing new Ether at a 4% annual rate, expected to decrease with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -3.54% yesterday.
February 02, 2024 | 6:00 pm
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4,642.37 Ether worth $10.66 million was burned as part of Ethereum's EIP-1159 upgrade, potentially leading to ETH becoming a deflationary currency.
The burning of Ether reduces the overall supply, which, combined with the decrease in new Ether issuance expected with Ethereum 2.0, could lead to deflationary pressure on ETH. This is generally seen as positive for the price as scarcity tends to increase value.
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