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: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • 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: Coinbase Confirms DOJ Investigation Following Major Security Incident

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 Range Tightens – Liquidity Looms At $2,800 And $2,350

Ethereum Range Tightens – Liquidity Looms At $2,800 And $2,350

Ethereum is approaching a pivotal moment as it pushes to reclaim the $2,600 level, aiming to break free from weeks...

Sebastian Villafuerte 1 day ago
Ethereum

Ethereum Breaks Higher With Conviction: No Signs Of A Breakdown Yet

Bankr, in a recent update, pointed out that Ethereum is maintaining its upward momentum, backed by solid volume and a...

Godspower Owie 1 day ago
Ethereum Risks Downside If Resistance Holds: $2,700 Level Is Critical

Ethereum Risks Downside If Resistance Holds: $2,700 Level Is Critical

Ethereum is trading above the $2,500 level, showing notable strength despite recent volatility across the broader crypto market. Since early...

Sebastian Villafuerte 1 day 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

Ethereum raggiunge i 6 miliardi di dollari in fondi tokenizzati mentre i grandi investitori entrano in gioco.

clararosati 7 hours ago
Ethereum

Ethereum Sees $6 Billion In Tokenized Funds As Big Players Jump In

Christian Encila 8 hours ago
Ethereum Price Hits Support

Ethereum Price Hits Support – Can It Launch a Fresh Move Higher?

Aayush Jindal 18 hours ago

Premium Sponsors

Press Releases

  • Felpörgő alternatív kriptovaluta a Dogecoin (DOGE) helyett – 650 dollárból 65 000 dollár lehet 4 hónap alatt

    Felpörgő alternatív kriptovaluta a Dogecoin (DOGE)...

    3 hours ago
  • 3 figyelemre méltó altcoin 2025. júliusának első hetében

    3 figyelemre méltó altcoin 2025. júliusának első...

    4 hours ago
  • Oblíbená alternativa Dogecoinu (DOGE), která z 650 USD udělá 65 000 USD za 4 měsíce

    Oblíbená alternativa Dogecoinu (DOGE), která z 650 USD...

    6 hours ago
  • 3 altcoiny, které sledovat v prvním týdnu července 2025

    3 altcoiny, které sledovat v prvním týdnu července 2025

    7 hours ago
  • Trendingowy alternatywny kryptowalut dla Dogecoin (DOGE), który zamieni 650 USD na 65 000 USD w ciągu 4 miesięcy

    Trendingowy alternatywny kryptowalut dla Dogecoin (DOGE)...

    7 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.