The Ethereum Network saw success with its long-awaited Shanghai Upgrade on April 12th which allowed withdrawal of around 18 million ETH tokens worth $35 billion. After the update, the ETH price surged to its 11-month peak at $2,100, much to the surprise of analysts who had previously predicted that the unlocking would trigger price decline. The digital asset managed to stay above the $1,850 value before the crypto market dove in.

The primary goal of the Shanghai Upgrade is to develop the performance and scalability of the Ethereum Network. The introduction of new features such as a gas model and support for stateless Ethereum clients will contribute to a faster and more efficient blockchain for better transaction times and reduced user expenses. Moreover, withdrawing ETH tokens reduces liquidity risk for users, increasing the chance for more capital in Liquid Staking Derivatives.

The settlement of 1.37 million ETHs from the Ethereum staking contracts following Shanghai Upgrade is also noteworthy. Data from Token Unlock reveal that nearly 950,000 ETHs were added to pledges while a net withdrawal of 430,000 ETHs took place. Around 870,000 ETHs are awaiting withdrawal and another 150,000 ETHs were already withdrawn.

Institutional investors have demonstrated an increased interest in staking Ethereum tokens and the Shanghai Upgrade could be one of the catalyzing factors. With the new set of features, improved scalability and minimized risk, Ethereum’s Shanghai Upgrade has the potential to drive more investors, progress and success. Despite the fact that the crypto market in general has seen a downturn, Ethereum maintains its position as one of the top cryptocurrency networks to look out for.



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