The post Ethereum Price Surge Ahead? Vitalik Buterin’s Scaling Plan Could Burn 713k ETH Annually appeared on BitcoinEthereumNews.com.

Ethereum price is on the rise again and trades around $3,385.2 as of 7 PM on January 24, 2025, but a new proposal from Vitalik Buterin could significantly impact its future trajectory. The co-founder’s recent proposal for accelerating Ethereum’s scalability — targeting 100,000 transactions per second (TPS) — has the ability to potentially reshape ETH’s tokenomics. This vision proposes scaling upgrades and Ethereum’s burn mechanism, which could remove 713,000 ETH annually from circulation, according to Buterin’s estimates. Let’s explore how this could impact Ethereum’s future and short-term impact on the price. Ethereum Price Today Ethereum price today trades around $3,385.2 as of 7 PM. From a daily high of $3,430.4 ETH’s value is down 4.98% on January 25. While the short-term performance has been uninspiring, the outlook is likely to change if Vitalik’s suggested plan comes to fruition. eth price today *Ethereum price updated as of 7 PM.  Vitalik Buterin’s Scaling Proposal & ETH Burn Impact Vitalik’s recent blog that outlines the “Surge” roadmap aims to scale Ethereum to 100,000 TPS by 2026. This plan aims to achieve its goal via Layer-2 rollups (e.g., Optimism, zkSync) and sharding, which parallelizes transaction processing. To facilitate these, the blog outlines some key burn mechanisms: Ethereum’s EIP-1559, which was introduced in 2021, plays a crucial role in this plan. Buterin notes that scaling would mean higher TPS and, hence, higher fees burned. Buterin specifically targets Layer-2 chains to make changes or be left behind. As a result, Vitalik projects 713,000 ETH burned annually if adoption aligns with scaling targets.  This would create a deflationary feedback loop of reduced supply and rising demand and would have a bullish impact on the price of ETH, propelling it higher. Impact on Ethereum Price As noted above, Vitalik’s plan for Ethereum will create the deflationary feedback loop…

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Filed under: News - @ January 24, 2025 8:25 pm