Good morning.Here is what happens:
Prices: Ether Surges High One Day After Ethereum Shanghai Upgrade; bitcoin was also up towards $31,000.
Knowledge: The massive ETH unlock that some crypto market watchers predicted did not happen.Ether price has risen, prospects for Ethereum and liquid staking derivatives are encouraging.
Ether Surpasses $2.1,000; Bitcoin inches towards $31,000
Crypto market watchers expect post-Shapella selling pressure to send Ether’s price plummeting on a day of disappointment.
The second-largest cryptocurrency by market capitalization began rising steadily shortly before US stock markets opened, only stalling after the price of ETH topped $2,000 for the first time since August.last.
Ether was recently trading above $2,100, up more than 11% in the past 24 hours as investors opted for the prospect of additional liquidity while earning rewards over the desire to take immediate profits.and run.
“Many traders were waiting for the upgrade to complete to start accumulating long positions,” Ilya Volkov, CEO and co-founder of crypto trading service provider YouHodler, wrote in an email to CoinDesk.
“Consequently, the neutral news on US inflation and delayed demand drove the price of ETH higher.”
Volkov noted that if current macro conditions do not worsen, Ether is unlikely to deviate from a price rally that began with other major cryptos earlier this year, even if the selling pressure increases in the following weeks.“Basically, ETH price remains in the same uptrend channel year-to-date,” he wrote.
Shapella, also called the Ethereum Shanghai upgrade, is the latest step in the transition of the Ethereum network from a proof-of-work (PoW) protocol to a more energy-efficient proof-of-stake (PoS) protocol.
Crypto market watchers were divided on its impact, with some predicting price swings while others anticipated little change.
Bitcoin has also continued its more subdued momentum, recently approaching $31,000, up more than 2.5% from the same time on Monday.Other major cryptos spent much of Thursday in the green with ARB, the Arbitrum layer 2 blockchain token, which recently soared around 33% and APT, the Aptos layer 1 blockchain native crypto., which jumped about 12%.The CoinDesk Index, a measure of the performance of crypto markets, recently rose nearly 5%.
Stocks closed higher with the technology-focused Nasdaq and the S&P 500, which has a large technology component, up 2% and 1.3%, respectively.
A number of crypto-related stocks continued their recent rally, with miners Marathon Digital and Hut 8 Mining each rising around 15%.Investors fearing the recession also continued to show their appetite for other assets that hold their value, sending gold above $2,050, near its all-time high of $2,069, set in 2020.
Will the ether continue to rise? CoinDesk analyst Glenn Williams suggested that ETH deposits would offer signals on the way forward.Since January 2021, the trajectory of ether deposited in ETH staking contracts has steadily increased, a direction that suggests the asset is gaining, not losing, favor,” Williams wrote.weeks and months ahead, this metric will likely flatten out as investors who need to de-stake ETH begin the process of doing so.But for those who want to stake, the completion of Shapella signals reduced risk, increased liquidity and increased asset values.”
Why didn’t you sell the news of the Ethereum upgrade in Shanghai?
From the numbers, it seems that many Ether (ETH) stakers have decided to hold onto their coins.Although several analysts predicted that the just-completed Ethereum Shanghai hard fork (along with the separate Capella upgrade, known as “Shapella”) would be a “sell the news” moment, the ETH actually hit eight-month highs.
The second-largest crypto by market capitalization was trading above $2,000 for the first time since last summer, after gaining around 3% during Asian trading hours.
This article is excerpted from The Node, CoinDesk’s daily roundup of the most crucial stories in blockchain and crypto news.You can subscribe to take full advantage newsletter here.
What this says about the viability of Ethereum and the outlook for ETH price is an open question.Shanghai, the backward compatible hard fork, has unlocked the ability for Ethereum stakingrs to withdraw the tokens they pledged to the Ethereum deposit contract used to validate the proof-of-stake network, along with the token payouts they received to do so.Many punters originally pledged 32 ETH to become validators in 2020, and haven’t really had access to their coins since.
So the more than 18 million ETH currently staked (worth around $33 billion) has not led to a torrent of sales.Loyal CoinDesk readers probably knew that the “selling pressure” on ETH was overdone.As Amphibian Capital CEO James Hodges wrote on Monday, the vast majority of ETH validators were in the red before the event, making it unlikely that they would cash in at a loss.
Now that crypto prices are rising, led in particular by bitcoin, which broke the all-important $30,000 threshold this week, fortunes may reverse.
Read the full story here:
The Ethereum upgrade in Shanghai is complete and the network is now processing staking withdrawals.Joining “First Mover” to discuss “Shapella,” as the upgrade is also called, is a senior protocol engineer at Ethereum client Besu, Justin Florentine.In addition, the internet giants and their metaverses worry some regulators.Sébastien Borget, co-founder and COO of The Sandbox, joined in for a chat.Plus, the latest in the FTX bankruptcy case and a closer look at the South Korean crypto scene..