12,634 ETH Worth $43M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 12,634.09 Ether (ETH) worth approximately $43.4 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade on August 5, 2021, which introduced a variable base fee for transactions that is burned. The current issuance rate of new Ether is 4% annually, expected to drop to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -15.94% yesterday.
February 29, 2024 | 6:00 pm
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12,634.09 Ether worth $43.4 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 reduces the supply of ETH, which, combined with the EIP-1159 upgrade and the anticipated reduction in new Ether issuance with Ethereum 2.0, could increase the scarcity of ETH. This scarcity, in turn, could lead to a price increase in the short term, especially considering the significant amount of ETH burned and the negative net issuance rate.
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