7,690 ETH Worth $18M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 7,690.44 Ether (ETH) worth $18,528,199 was burned, permanently removing it from circulation. This action follows the EIP-1159 upgrade to the Ethereum blockchain, which introduced a variable base fee for transactions that is burned, reducing Ether's supply. 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 -8.41% yesterday.
February 07, 2024 | 6:00 pm
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7,690.44 Ether worth $18,528,199 was burned, potentially making ETH a deflationary currency as the issuance rate is expected to drop with the Ethereum 2.0 upgrade.
The burning of Ether reduces the overall supply, which, combined with the expected decrease in issuance rate due to the Ethereum 2.0 upgrade, could lead to deflationary pressure on ETH. This is generally seen as positive for the value of a currency, as scarcity can drive up prices.
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