Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Ethereum Forum => Topic started by: Coinpedia Fintech News on April 11, 2023, 01:34:59 PM
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The Ethereum Shanghai upgrade is set to launch soon, and it's causing quite a stir in the crypto space.
So, what is the Ethereum Shanghai upgrade, and why is it causing such a buzz? Well, the upgrade aims to address some of the biggest issues faced by the Ethereum platform, such as high gas fees and limited smart contract capabilities. This upgrade has been highly anticipated for a while now, and after a couple of delays, it's finally scheduled to launch on April 12, 2023.
Many people are wondering what the impact of this upgrade will be on the crypto market, specifically on the Ethereum price. Some predict that there may be a flood of unlocked ETH into the markets, creating a lot of selling pressure, while others believe that the staking rate over the platform may continue to soar. There are a lot of opinions out there, but we'll break down some of the most significant impacts that could happen below.
First up, staking withdrawals may be slower than expected. The Ethereum Shanghai upgrade will allow traders to withdraw their staked ETH, which has been locked up for over 50 months now. However, it's unlikely that traders will withdraw all at once, which could keep the markets relatively calm.
Next, we may see a massive drop in LSD protocols. LSD, or liquid staking derivatives, have become very popular as a way of earning rewards by delegating tokens via liquid staking pools like Lido DAO. However, with the upgrade allowing traders to withdraw their staked ETH, the main reason for using LSDs will disappear. This could cause a significant drop in their usage.
Finally, the Ethereum price may spike, triggering an Altseason. As Ethereum and Ethereum-based tokens have become increasingly popular, we could see a significant price increase in the coming days.
This could also have an impact on altcoins, triggering a notable altseason. Additionally, Bitcoin's dominance is slowly waning, which could keep alts performing well for the longer run.
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I have been closely following the price of ethereum since the April 12th update. While the entire cryptocurrency market is growing little by little, it is difficult to say how much this coin has been affected by the latest update. But still, the price of ethereum has now risen to just over $2,100.