16,557 ETH Worth $64M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Wednesday, 16,557.91 Ether (ETH) worth approximately $64.12 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, contributing to a decrease in Ether's supply. The Ethereum network is currently issuing new 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 -21.99% yesterday.
March 07, 2024 | 6:00 pm
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16,557.91 ETH worth $64.12 million was burned, potentially making Ethereum a deflationary currency as the issuance rate is expected to decrease with the Ethereum 2.0 upgrade.
The burning of 16,557.91 ETH reduces the overall supply of Ethereum, which, combined with the expected decrease in issuance rate due to the Ethereum 2.0 upgrade, could lead to Ethereum becoming a deflationary currency. This reduction in supply, especially if the burn rate exceeds the issuance rate, could increase the value of ETH in the short term.
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