10,256 ETH Worth $34M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 10,256.79 Ether (ETH) worth $34,517,069 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 Ethereum network is currently issuing new Ether at a 4% annual rate, expected to decrease with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -12.21% yesterday.
February 28, 2024 | 6:00 pm
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10,256.79 Ether worth $34,517,069 was burned, potentially impacting the deflationary nature of ETH following the EIP-1159 upgrade.
The burning of 10,256.79 ETH, valued at $34,517,069, directly impacts the supply of Ether, making it potentially deflationary. This is significant given the EIP-1159 upgrade's mechanism for burning a portion of transaction fees, which permanently removes ETH from circulation. The expected decrease in Ether's issuance rate with the Ethereum 2.0 upgrade further supports the potential for ETH to become a deflationary currency. The net annualized issuance rate of -12.21% indicates a current trend towards deflation.
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