11,955 ETH Worth $29M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 11,955.20 Ether (ETH) worth approximately $29.93 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 to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -15.25% yesterday.
February 09, 2024 | 6:00 pm
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11,955.20 Ether worth $29.93 million was burned, potentially impacting the deflationary nature of Ethereum with its current and future issuance rates.
The burning of Ether reduces the overall supply, which can lead to an increase in value if demand remains constant or increases. The implementation of EIP-1159 and the anticipated reduction in new Ether issuance with Ethereum 2.0 could further enhance this deflationary pressure. Given the significant amount of Ether burned and the potential for a decreased issuance rate, this event is likely to have a positive short-term impact on the price of ETH.
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