14,216 ETH Worth $56M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 14,216.86 Ether (ETH) worth approximately $56M 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. The Ethereum network is currently issuing new Ether at a 4% annual rate, expected to decrease with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -18.30% yesterday.
March 12, 2024 | 6:00 pm
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14,216.86 Ether worth $56M was burned, potentially impacting its supply and value. The Ethereum network's upgrade and expected decrease in issuance rate 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 Ethereum 2.0 upgrade and the potential for a lower issuance rate further support the possibility of ETH becoming a deflationary currency, which could positively impact its value in the short term.
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