3,396 ETH Worth $7M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 3,396.50 Ether (ETH) worth approximately $7.8 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade 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 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 -1.50% yesterday.
February 05, 2024 | 6:00 pm
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3,396.50 Ether worth $7.8 million was burned, potentially leading to ETH becoming a deflationary currency due to the EIP-1159 upgrade and the upcoming Ethereum 2.0 changes.
The burning of Ether reduces the total supply, which can lead to an increase in value if demand remains constant or increases. The EIP-1159 upgrade and the anticipated Ethereum 2.0 changes, which are expected to further reduce the issuance rate, could make Ether a deflationary asset, potentially increasing its value over time.
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