10,910 ETH Worth $38M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 10,910.86 Ether (ETH) worth $38.7 million 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 drop to 0.5-1% with Ethereum 2.0, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -13.15% yesterday.
March 04, 2024 | 6:00 pm
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10,910.86 Ether worth $38.7 million 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 total supply, which can lead to an increase in value if demand remains constant or increases. The transition to Ethereum 2.0 and the expected decrease in issuance rate further support the potential for ETH to become more valuable over time. The net annualized issuance rate of -13.15% indicates a current trend towards deflation, which could positively impact the price of ETH in the short term.
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