6,102 ETH Worth $19M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 6,102.97 Ether (ETH) worth $19,247,054 was burned, permanently removing it from circulation. This follows the EIP-1159 upgrade to the Ethereum blockchain, 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 Ethereum 2.0, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -5.65% yesterday.
February 26, 2024 | 6:00 pm
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6,102.97 Ether worth $19,247,054 was burned, potentially leading to ETH becoming a deflationary currency as the issuance rate is expected to decrease with Ethereum 2.0.
The burning of Ether reduces the overall supply, which, combined with the expected decrease in issuance rate due to Ethereum 2.0, could increase the scarcity and potentially the value of ETH in the short term. The net annualized issuance rate of -5.65% further supports the potential for ETH to become deflationary.
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