12,743 ETH Worth $50M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Tuesday, 12,743.76 Ether (ETH) worth approximately $50.7 million was burned, permanently removing it from circulation. This action follows the Ethereum blockchain's EIP-1159 upgrade on August 5th, 2021, which introduced a variable base fee for transactions that is burned. The current issuance rate of new Ether is 4% annually, 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 -16.00% yesterday.
March 13, 2024 | 6:00 pm
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12,743.76 Ether worth $50.7 million was burned, potentially impacting ETH's value by making it a deflationary currency as the issuance rate is expected to decrease with the Ethereum 2.0 upgrade.
The burning of a significant amount of Ether, coupled with the anticipated decrease in issuance rate due to the Ethereum 2.0 upgrade, suggests a potential increase in ETH's value. The move to a deflationary model, where the burn rate exceeds the issuance rate, could create scarcity, driving up the price. However, market reactions can be unpredictable, and external factors could influence the actual impact.
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