8,548 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 8,548.90 Ether (ETH) worth approximately $20.76 million was burned, permanently removing it from circulation. This action follows 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% per year, 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 -9.78% yesterday.
February 08, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
8,548.90 Ether worth $20.76 million was burned, potentially leading to ETH becoming a deflationary currency due to the EIP-1159 upgrade and upcoming Ethereum 2.0 changes.
The burning of Ether reduces the overall supply, which, combined with the EIP-1159 upgrade and the anticipated decrease in new Ether issuance with Ethereum 2.0, could make ETH a deflationary currency. This reduction in supply, assuming demand remains constant or increases, could lead to a price increase in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100