5,933 ETH Worth $15M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 5,933.58 Ether (ETH) worth approximately $15.48 million was burned, permanently removing it from circulation. This action is part of 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% 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 -5.53% yesterday.
February 12, 2024 | 6:00 pm
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5,933.58 Ether worth $15.48 million was burned, potentially impacting the supply and value of ETH. The Ethereum blockchain's EIP-1159 upgrade and the anticipated Ethereum 2.0 could make ETH a deflationary currency.
The burning of Ether directly reduces the supply of ETH, which can lead to an increase in its value if demand remains constant or increases. The implementation of EIP-1159 and the transition to Ethereum 2.0 are significant upgrades that could further reduce the supply of ETH, making it a deflationary asset. This has the potential to positively impact the price of ETH in the short term, especially considering the current negative net issuance rate.
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