7,473 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 7,473.71 Ether (ETH) worth approximately $20.74 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% per year, expected to decrease with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -7.94% yesterday.
February 16, 2024 | 6:00 pm
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7,473.71 Ether worth $20.74 million was burned, potentially leading ETH towards becoming a deflationary currency due to the EIP-1159 upgrade and anticipated changes with Ethereum 2.0.
The burning of Ether reduces the overall supply, which can lead to an increase in value if demand remains constant or increases. The EIP-1159 upgrade and the anticipated Ethereum 2.0 changes are significant factors that could make ETH a deflationary currency, potentially increasing its value over time. The reported net annualized issuance rate of -7.94% further supports the deflationary trajectory.
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