– Ethereum network’s Shapella upgrade will transform the liquid staking landscape forever, making ETH the benchmark yield for crypto.
– Lowering of gas fees for developers and increase in popularity of liquid staking derivatives is expected to drive ETH adoption higher.
– Nearly 85% of Ethereum holders expect more ETH to be staked within the next three months, driving away fears of massive selling pressure on the altcoin.
Ethereum blockchain’s Shapella upgrade is slated to occur on April 12.This marks the second-most significant milestone in Ethereum’s developmental journey post the Merge, the transition from Proof-of-Work.
Liquid staking derivatives have gained traction in the weeks leading up to the Merge.
Also read:
Ethereum stakers are underwater with Shanghai hard fork drawing close
Ethereum Shapella upgrade run down
Ethereum Shapella upgrade, known as Shanghai, is a hard fork scheduled for April 12, 2023.The upgrade lines up a series of improvements in the Ethereum blockchain, including the proposed Ethereum Improvement Proposals (EIPs) Shanghai and Capella.
In addition to token withdrawals, the upgrade reduces gas fees for
https://www.fxstreet.com/cryptocurrencies/news/us-nonfarm-payrolls-turn-out-to-be-a-non-event-for-bitcoin-and-ethereum-202304071338 network developers.The Shanghai upgrade has bundled five different EIPs, EIP 3651, 3855, 3860, 4895 and 6049.
These Ethereum Improvement Proposals address scalability issues, transaction fees and token withdrawal related developments on the blockchain.Capella upgrade tackles full and partial withdrawals for the network’s validators.
What Ethereum holders need to do?
Ethereum holders and users don’t need to take any additional steps if they use an exchange, digital or
hardware wallet unless specified by wallet providers.
What happens if stakers or node operators do not participate in the upgrade?
Ethereum clients that fail to update to the latest versions will sync to pre-fork blockchain once the upgrade is complete.This implies that the operator will be stuck on an incompatible chain and unable to operate on the post-Shanghai blockchain network.Therefore it is essential that operators participate in the upgrade.
What ETH holder community expects
On Crypto Twitter,
https://www.fxstreet.com/cryptocurrencies/news/ethereum-traders-front-run-shanghai-hard-fork-with-majority-of-staked-eth-underwater-202304070603 believers, a group referred to as “ETH Maxis,” analysts and developers have presented different scenarios for ETH post the hard fork.
Experts believe ETH token unlock could result in temporary selling pressure on the altcoin, however a large percentage of staked ETH may hit liquid staking projects or line up for staking elsewhere given the price of the altcoin, and holders being underwater at the time of unlock.
Another scenario stems from the front-running of the Shapella upgrade and Ethereum’s recent price rally to the 2023 high above $1,900.It is likely that the ETH upgrade is priced in and the token unlock turns out to be a non-event or has less of a bearish impact than anticipated previously by the community.
More Ethereum to be staked within the next three months: 83% ETH holders
In a recent survey conducted by OKX exchange, 83% of ETH community members/ respondents expressed optimism about a spike in Ethereum staking within the next three months.
Following are the key findings of the survey:
Key findings of the OKX survey
While the token unlock is going live for the first time since the launch of the Beacon Chain contract in 2020, ETH holders are convinced that more tokens will be staked within the next three months, supporting a bullish thesis for the asset in the medium-term.
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