The Shanghai upgrade of Ethereum is scheduled to take place on April 12. The highly anticipated upgrade marks the second most important milestone in Ethereum’s developmental journey post-Merge, which is its transition from PoW. At the same time, it will be the date when the large amount of ETH that was locked in the December 2020 period will be released.
Ethereum Shapella upgrade has arrived: ETH investors beware of these
The Ethereum Shapella upgrade, known as Shanghai, is a hard fork scheduled for April 12, 2023. The upgrade enumerates a number of improvements over Ethereum, including the proposed Ethereum Improvement Proposals (EIPs) Shanghai and Capella.
In addition to launching ETH withdrawals, the upgrade will reduce gas fees for Ethereum network developers. The upgrade also brought together five different EIPs, EIP 3651, 3855, 3860, 4895 and 6049. These EIPs address network scalability issues, transaction fees, and token withdrawal developments. The Capella upgrade handles full and partial withdrawals for the network’s validators.
What should Ethereum investors do?
Ethereum investors and users do not need to take any additional steps if they use an exchange, digital, or hardware wallet unless specified by their wallet provider.
What happens if stakers or node operators do not participate in the upgrade?
Ethereum clients that cannot be updated to the latest versions are synced to their pre-fork Blockchain after the upgrade is complete. This means that the operator will be stuck in an incompatible chain and unable to operate in the post-Shanghai Blockchain network. Therefore, it is important for operators to participate in the upgrade.
Ethereum analysts’ expectations
On crypto Twitter, Ethereum supporter, analysts and developers, a group called “ETH Maxis”, presented different scenarios for post-hard fork ETH. Experts believe that ETH token unlocking may cause temporary selling pressure on the altcoin, but a large percentage of ETH staked may hit liquid staking projects or otherwise, given the altcoin’s price and holders inundated at the time of unlocking. can queue to stake on the ground.
Another scenario is due to the Shapella upgrade taking the lead and Ethereum’s recent price rally above the 2023 high of $1,900. It is likely that the pricing of the ETH upgrade and token unlocking was not an event or will have less bearish impact than previously anticipated by the community.
More Ethereum to be staked in the next three months
In a recent survey conducted by OKX, 83% of ETH community members/participants expressed optimism that there will be an increase in ETH staking in the next three months.
With the token unlock being released for the first time since the Beacon Chain contract was launched in 2020, ETH investors believe more tokens will be staked in the next three months. This supports the bullish argument for ETH in the medium term.
How can the upgrade offer a profit opportunity to crypto investors?
Crypto investors experiencing backlash in turbulent events in the cryptocurrency market can unlock ETH tokens as their first opportunity to empty their portfolios. Investors with a risk appetite will continue to hold or stake their ETH in anticipation of future rewards. These two possibilities bring ETH a decision maker for the altcoin market and we will see how ETH investors will react after the token is unlocked.
Experts criticize Ethereum for scalability issues
Turkish crypto analyst and expert Yavuz Ayral believes that the focus on Ethereum is limiting innovation in the cryptocurrency industry. Despite the uncertainty in the ETH ecosystem, several Layer 2 solutions are working to overcome Ethereum’s problems.
cryptocoin.com In this article, we answered questions such as how much ETH will be free in the Shanghai upgrade, which whales and companies can sell.
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