NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Here’s How Ethereum 2.0 Could Lead to Negative Annual Issuance

Cole Petersen
Cole Petersen
5 years ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The imminent launch of Ethereum 2.0 has long drawn the attention of cryptocurrency investors.

Many investors have speculated that the blockchain’s transition to a Proof-of-Stake (PoS) consensus system will help onboard new investors due to its steaking incentives.

It is also widely anticipated that the 2.0 version of the blockchain will help the cryptocurrency fix its scalability issues that have plagued it throughout the past few years, potentially allowing it to continue sustaining its massive utility growth rate.

Analysts are now noting that the fee burn in ETH 2.0 could also lead the cryptocurrency to see negative annual issuance – which would be extremely bullish for its underlying token fundamentals.

It appears that investors are taking notice of this possibility.

Ethereum 2.0 Could Lead the Crypto to See Negative Issuance 

It is widely thought that Ethereum 2.0’s testnet will be launched in July, with this being the first step towards the crypto’s lengthy transition.

It is important to note that Ethereum founder Vitalik Buterin has sent mixed signals on whether or not it will actually be launched in July, although he has noted that he does not expect it to face any unexpected roadblocks, putting it on-track to be launched at some point in Q3 of this year.

Among many other things, one factor that is expected to help drive investors to ETH is its new staking mechanism, which allows individuals to run network validator nodes in exchange for staking rewards.

ETH 2.0 is also anticipated to significantly reduce Ethereum’s annual issuance, with some market participants even noting that it could eventually go negative.

“Over the past week, the Ethereum network has generated ~1900 ETH in fees a day, or ~700k ETH annualized. At 10mn ETH staked in PoS, the network will produce ~575k ETH a year. With fee burn in eth2, it’s very likely that we will eventually get to negative annual issuance,” one developer noted.

Over the past week, the Ethereum network has generated ~1900 ETH in fees a day, or ~700k ETH annualized.

At 10mn ETH staked in PoS, the network will produce ~575k ETH a year.

With fee burn in eth2, it's very likely that we will eventually get to negative annual issuance.

— eric.eth (@econoar) May 20, 2020

David Hoffman, however, explained that he isn’t convinced that this will happen.

“I’m actually less convinced of going negative. More ETH burn should increase ETH staking returns. More ETH staking increases issuance. I don’t know where the equilibrium sets but I’m not convinced that it’s at a negative number,” he explained.

I’m actually less convinced of going negative.

More ETH burn should increase ETH staking returns. More ETH staking increases issuance. I don’t know where the equilibrium sets but I’m not convinced that it’s at a negative number

— DavidHoffman.eth/acc🦇🔊 (@TrustlessState) May 21, 2020

Investors Seem to Be Taking Notice of Imminent ETH 2.0 Launch 

If Ethereum’s annual issuance does go negative eventually, it would make the cryptocurrency a deflationary asset.

Couple this with the heightened scalability and PoS staking brought about by ETH 2.0, and it does appear that the crypto could be poised to see notable upside.

Traders are taking notice – the number of Ethereum long positions on Bitfinex have rocketed in recent times.

“2.2% of all ETH in existence is now margin long on Bitfinex, an increase of ~160% since February,” one trader noted.

Ethereum 2.0
Image Courtesy of Jonny Moe
Featured image from Shutterstock.
Tweet123Share196ShareSend
Cole Petersen
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum news

Tom Lee Predicts $30,000 Per Ethereum As Treasury Frenzy Begins

Tom Lee devoted a six-post thread on X yesterday to a single proposition: if companies treat Ethereum (ETH) the way...

Jake Simmons 8 hours ago
Coinbase Premium Signals Aggressive Ethereum Accumulation: Institutional Demand Accelerates

Coinbase Premium Signals Aggressive Ethereum Accumulation: Institutional Demand Accelerates

Ethereum has surged more than 70% since mid-June, marking one of its most impressive rallies of the year. The move...

Sebastian Villafuerte 11 hours ago
Ethereum

Ethereum’s Breakout Above The MA50 Suggests Further Upside, Here’s The Target

Ethereum (ETH) has decisively broken above a resistance level, the 50-day Exponential Moving Average (EMA50), igniting renewed bullish momentum across...

Scott Matherson 14 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

solana

Solana Near Last Major Resistance Amid 10% Surge – Analyst Says ‘Real Bull Run’ Is Close

Rubmar Garcia 1 hour ago
Ethereum

This Ethereum Metric Called The Bottom Ahead Of Rally, Says Analytics Firm

Keshav Verma 4 hours ago
Ethereum's Rally Isn't What It Seems — Here's What's Really Driving It

Ethereum’s Rally Isn’t What It Seems — Here’s What’s Really Driving It

Samuel Edyme 5 hours ago

Premium Sponsors

Press Releases

  • 今買うべき注目の仮想通貨プレセール3選:革新的レイヤー2と次世代トレーディングプラットフォーム

    ...

    2 hours ago
  • ビットコインが118,000ドルを回復|今注目の新しい仮想通貨と次の10倍成長が期待されるBTC代替案

    ...

    2 hours ago
  • イーサリアムが3,500ドルに迫る中で注目すべきアルトコイン3選

    ...

    2 hours ago
  • 仮想通貨投資の新たな選択肢として注目を集める話題のミーム銘柄、市場の盛り上がりと共に関心拡大

    ...

    2 hours ago
  • 新高値更新で17%上昇のXRP、しかし今注目すべきico仮想通貨は別にあると専門家は指摘

    ...

    2 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.