The growth in the price of Ethereum has also caused a friction on the main Liquid Stake Derivatives (LSD) Platform.
Ethereum (ETH) joined Bitcoin (BTC) in leading the rally in the digital currency ecosystem today as major stakeholders and investors religiously await the next Shapella update.
At the time of writing this article, Ethereum is changing hands to $1,913.45, up 4.34% in the last 24 hours, as the industry’s largest smart contract platform looked to take advantage of its 5.17% gain in the 7-day period. The current growth rate is the highest Ethereum has printed since August 2022, culminating in a 9-month high from today.
Ethereum growth is being fueled by sentiment surrounding the Shapella upgrade in which early backers of the Proof-of-Work (PoW) to Proof-of-Stake (PoS) protocol transition will have access to their staked coins. Many are optimistic that the future of the Ethereum network after Shapella will be very bullish, therefore they are making a bullish commitment to Ether tokens right now.
“Allowing withdrawals, fueled by the recent popularity of liquid staking platforms, will make staking in ETH much more accessible to retail investors who were previously unwilling to staking in ETH for an indeterminate period of time.” saying Chen Zhuling, CEO of RockX staking service, in a note to CoinDesk.
Many investors have been staking their coins since December 2020, when the deposit contract for PoS Ethereum was first released. At the time, the minimum stake amount was set at 32 ETH, however, numerous support platforms have made it possible for retail investors to join the stake event by contributing a fraction of the required minimum amount.
The Shapella update is a precursor to the Shanghai and Capella updates, both of which will take place simultaneously in about a week on April 12.
Ethereum upgrade and price removal on LSD
The growth in the price of Ethereum has also caused a friction on the main Liquid Stake Derivatives (LSD) Platform. These platforms, including Lido Finance and Marinade Finance, among others, help users access staked Ether returns while also freeing up liquidity that would otherwise be inaccessible through the main ETH staking platform. .
The popularity of LSD tokens has grown over the past year, and today the rise in Ethereum is also causing a corresponding positive rally in the price of these tokens. Lido Finance’s native LDO token is up 8.25% to $2.68, and RocketPool (RPL), another prominent LSD platform, has seen its token price rise 8.48% to $48.14.
With innovation and evolution at the forefront of the operations of these protocols, we are bound to see them launch many unique products following Ethereum’s ability to enable unstacking and withdrawal of staked tokens after the Shanghai upgrade. As such, these LSD coins are bound to continue to experience increases in the price and valuation of the native coin.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
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