As we approach the Shanghai Upgrade of the Ethereum blockchain on April 12, there is growing confidence among crypto investors surrounding Ether (ETH), the second-biggest cryptocurrency by market value. This occasion is giving a significant boost to Ether's price, resulting in a 6% increase in the last twenty four hours and bringing it to a nine-month high.
The Shanghai Upgrade will provide Ether holders with additional security features, as well as enable the withdrawal of staked ether (stETH). This feature was not available in the Merge, the most recent upgrade of the Ethereum blockchain, which took place last September.
As the upgrade approaches, investors are realizing that nearly 70% of staked ETH has already been through liquid staking protocols such as Lido, meaning holders have already been able to sell their stETH regardless.
The remaining staked Ether is unlikely to be sold off shortly, since it was originally deposited into the beacon chain in December 2020, when there was significant uncertainty as to whether the transition to proof-of-stake would have been successful.
The enhanced functionality of the staking options combined with the improved security features of the Ethereum Blockchain is encouraging further investment in Ether. In addition, the ability to deposit and withdraw Ether easily has given more confidence to those currently on the sidelines while providing them with more incentive to start staking tokens.
Given the current climate, it would appear that the Shanghai upgrade is proving to be highly beneficial for Ether. Given that the token has struggled to outperform Bitcoin (BTC) this year, a 14% record for under-performance, it remains to be seen whether its newfound strength will enable it to rebound and make up lost ground.
In any case, analysts from Bernstein remain optimistic that the market is anticipating good news from the upgrade. A recent research note from Gautam Chhugani and Manas Agrawal suggested that the current surge is a sign of relative strength for ETH versus BTC and should be viewed in a positive light.
Julia Nelson
- 2023-04-05
Shanghai Upgrade Boosts Ether Price
The Shanghai Upgrade of the Ethereum blockchain is bringing a significant boost to Ether's price, resulting in a 6% increase in the last twenty four hours, bringing it to a nine-month high. With enhanced functionality and improved security features, investment in Ether is becoming increasingly attractive.
