14,696 ETH Worth $50M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 14,696.13 Ether (ETH) worth approximately $50.2 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade, which introduced a variable base fee for transactions that is burned, reducing Ether's supply. The Ethereum network is currently issuing Ether at a 4% annual rate, 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 -19.18% yesterday.
March 01, 2024 | 6:00 pm
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14,696.13 Ether worth $50.2 million was burned, potentially making ETH a deflationary currency as the Ethereum 2.0 upgrade approaches.
The burning of Ether reduces the overall supply, which, combined with the upcoming Ethereum 2.0 upgrade expected to further decrease the issuance rate, could increase the value of ETH in the short term. The significant amount burned and the negative net issuance rate indicate a strong move towards making ETH a deflationary asset, which is generally seen as positive for price appreciation.
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