11,130 ETH Worth $41M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Thursday, 11,130.70 Ether (ETH) worth $41M 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 Ethereum network is currently issuing 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 -13.48% yesterday.
March 15, 2024 | 6:00 pm
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11,130.70 Ether worth $41M was burned, potentially making ETH a deflationary currency as the Ethereum 2.0 upgrade approaches.
The burning of Ether reduces the overall 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 new Ether issuance rate could further exacerbate this effect, making ETH more scarce and potentially more valuable.
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