10,122 ETH Worth $29M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 10,122.65 Ether (ETH) worth approximately $29.78 million was burned, permanently removing it from circulation. This action is part of the Ethereum blockchain's EIP-1159 upgrade, which introduced a variable base fee for transactions that is burned. The Ethereum network is currently issuing new Ether at a 4% annual rate, 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 -12.06% yesterday.
February 23, 2024 | 6:00 pm
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10,122.65 Ether worth $29.78 million was burned, reducing supply and potentially making ETH a deflationary currency due to the EIP-1159 upgrade.
The burning of Ether directly reduces the supply of ETH, which, according to economic principles, could increase its value if demand remains constant or increases. The EIP-1159 upgrade and the potential for ETH to become a deflationary currency further support a positive outlook for ETH's value in the short term.
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