ETH Burned refers to the process of sending Ethereum (ETH) tokens to an unusable wallet address, also known as a burn address. This process effectively removes the tokens from circulation, reducing the total supply of ETH available in the market.
The main purpose of burning ETH is to create scarcity and increase the value of the remaining tokens. By reducing the supply, the demand for ETH may increase, potentially leading to a rise in the token’s price.
ETH burning can be done for various reasons, such as to improve the overall health of the Ethereum network, to incentivize holders to hold onto their tokens for a longer period, or to mark a significant event such as a network upgrade or a token buyback.
Overall, ETH burning is a strategic move by cryptocurrency projects to manage the token supply and potentially drive up the value of the remaining tokens in circulation.
