7,114 ETH Worth $20M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 7,114.69 Ether (ETH) worth approximately $20.66 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% per year, 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 -7.32% yesterday.
February 20, 2024 | 6:00 pm
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7,114.69 Ether worth $20.66 million was burned, potentially leading to ETH becoming a deflationary currency due to the EIP-1159 upgrade and upcoming Ethereum 2.0 changes.
The burning of Ether directly impacts its supply, making ETH-USD potentially more valuable as the supply decreases. The EIP-1159 upgrade and the anticipated Ethereum 2.0 changes are significant factors in reducing the supply, which could lead to an increase in ETH's price in the short term. The net annualized issuance rate being negative further supports the potential for ETH to become a deflationary currency, which is generally seen as positive for asset value.
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IMPORTANCE 90
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