Ethereum Shanghai Upgrade Successful: ETH Price Unscathed

Ethereum‘s historic Shanghai upgrade has been successfully implemented, and so far the ETH price is unscathed. This news defies the traditional “buy the rumor, sell the news” advice, and paints a much more positive picture for Ethereum’s prospects.

Impact on ETH Price and Staked ETH Withdrawal

Ethereum’s Shanghai upgrade is a key factor in the continued development of the blockchain, as it enables the withdrawal of staked ETH by network participants. The upgrade also completed the shift to a proof of stake network. As Ethereum had $35 billion worth of ETH deposited with the network previously, many speculated that its successful implementation would cause the market to crash.

Traders had braced themselves for a crash a few months ago in September when Ethereum transitioned to proof of stake, and the price of ETH plummeted 8% immediately following the news. This time around, however, it appears that Ethereum has flown under the radar, remaining largely unscathed shortly after Shanghai’s launch.

ETH Upgrade Shock Overstated

Analysts had also expected more than $300 million worth of ETH to be liquidated immediately following the upgrade. It is believed, however, that much of the capital supposedly locked up was actually liquid for some time due to the presence of staking pools and crypto exchanges that had issued staking tokens to customers. Thus, the shock from the upgrade was likely overstated and ETH stayed steady after the event.

Shanghai’s Impact on Ethereum’s Yield: Risk-Free Rate Surpassing Bitcoin?

Matthew Niemerg, co-founder of privacy-enhancing blockchain network Aleph Zero, noted that Shanghai’s impact on ETH’s price is “priced in” as most ETH was already liquid and accessible. Ethereum’s anticipated yield may eventually become comparable to the risk-free rate of traditional investments and could even eventually surpass Bitcoin as the world’s largest coin.

Optimism for Investors’ Portfolios

A majority of the ETH community has breathed a sigh of relief at the Shanghai upgrade being implemented without incident and ETH prices remaining unscathed. Based on its historic performance, Bitcoin may soon have some serious competition from Ethereum when it comes to being the world’s most dominant coin. Investors should be optimistic about its future and consider how it could potentially benefit their portfolios.

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Chris Griffin
Chris has had a career as an advisor to the tech industry, incubating start-ups in the tech industry. Welcoming Chris to contribute his expertise covering the latest things he sees in blockchain