8,661 ETH Worth $22M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 8,661.32 Ether (ETH) worth $22,640,162 was burned, permanently removing it from circulation. This action follows the EIP-1159 upgrade implemented on August 5th, 2021, which introduced a variable base fee for transactions that is burned. The Ethereum network is currently issuing 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 -9.89% yesterday.
February 13, 2024 | 6:00 pm
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8,661.32 Ether worth $22,640,162 was burned, potentially leading to ETH becoming a deflationary currency as the Ethereum 2.0 upgrade approaches, which could decrease its issuance rate to 0.5-1%.
The burning of a significant amount of Ether, coupled with the anticipated decrease in issuance rate due to the Ethereum 2.0 upgrade, suggests a potential shift towards ETH becoming a deflationary currency. This could increase its scarcity and potentially its value in the short term, especially considering the current negative net issuance rate.
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