7,886 ETH Worth $22M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 7,886.89 Ether (ETH) worth approximately $22.9 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade implemented on August 5th, 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 -8.53% yesterday.
February 21, 2024 | 6:00 pm
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7,886.89 Ether worth $22.9 million was burned, potentially impacting the supply and value of ETH. The Ethereum blockchain's EIP-1159 upgrade and the anticipated Ethereum 2.0 could make ETH a deflationary currency.
The burning of 7,886.89 ETH directly reduces the circulating supply of Ether, which can create upward pressure on its price, especially in the context of the EIP-1159 upgrade that makes each transaction burn a variable base fee. With the anticipated decrease in new Ether issuance rate due to the Ethereum 2.0 upgrade, the supply dynamics of ETH are expected to shift towards deflation, potentially increasing its value over the short term.
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