4,728 ETH Worth $13M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 4,728.74 Ether (ETH) worth approximately $13.9 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 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 -3.53% yesterday.
February 19, 2024 | 6:00 pm
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4,728.74 Ether worth $13.9 million was burned, potentially contributing to ETH becoming a deflationary currency as part of the EIP-1159 upgrade and the upcoming Ethereum 2.0 changes.
The burning of Ether reduces the overall supply, which, combined with the decrease in new Ether issuance expected with Ethereum 2.0, could increase the scarcity and potentially the value of ETH. The net annualized issuance rate of -3.53% indicates a move towards deflation, which could positively impact ETH's price in the short term.
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