5,630 ETH Worth $15M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 5,630.24 Ether (ETH) worth approximately $15.9 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade 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 -5.01% yesterday.
February 15, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
5,630.24 Ether worth $15.9 million was burned, potentially impacting the supply and value of ETH. The Ethereum 2.0 upgrade could further reduce the issuance rate, making ETH a deflationary asset.
Burning Ether reduces the total supply, which can increase scarcity and potentially the value of ETH. The transition to Ethereum 2.0 and a further reduction in issuance rate could enhance this effect, making ETH more valuable in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100