12,326 ETH Worth $49M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Sunday, 12,326.66 Ether (ETH) worth approximately $49.9M was burned, permanently removing it from circulation. This action follows the EIP-1159 upgrade implemented on August 5, 2021, 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 to 0.5-1% with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -15.33% yesterday.
March 11, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
12,326.66 Ether worth $49.9M was burned, potentially impacting the supply and value of ETH. The Ethereum network's upgrade and the move towards Ethereum 2.0 could make ETH a deflationary asset.
The burning of Ether reduces the overall supply, which can lead to an increase in value if demand remains constant or increases. The EIP-1159 upgrade and the anticipated reduction in new Ether issuance with Ethereum 2.0 further support the potential for ETH to become a deflationary currency, positively impacting its value in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100