6,541 ETH Worth $17M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 6,541.44 Ether (ETH) worth approximately $17.9 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% annually, 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 -6.48% yesterday.
February 14, 2024 | 6:00 pm
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6,541.44 Ether worth $17.9 million was burned, potentially moving ETH towards 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 lead to ETH becoming a deflationary currency. This reduction in supply, especially if the burn rate exceeds the issuance rate, is likely to have a positive impact on the price of ETH in the short term.
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