Ethereum has often been touted as the only cryptocurrency with the right technology, embrace, and functionalities to surpass Bitcoin (BTC) in terms of market capitalization.
The Ethereum network, dubbed the second largest blockchain protocol by market capitalization, will undergo another significant upgrade dubbed Shapella. The Shapella upgrade is designed to usher in a new era where Ethereum staking products and services can produce rewards in a shorter time compared to the fund’s lock-in model it currently operates with.
The Shapella upgrade has been hailed as one of the most significant changes to be made to the Ethereum protocol since the full transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus model. The importance of the Shapella upgrade is further highlighted in the projected volatility that will likely precede the unlocking of funds.
Notably, as of December 2020, up to $30 billion worth of Ether tokens have been locked in dedicated smart contracts on the Ethereum blockchain. With the update, stakeholders will now have the ability to gain access to their tokens, which many can choose from. to sell
Investors are already pricing in the possible sell-off before the designated time for the update to go live, which is set at 22:30 GMT according to a major developer, Tim Beiko.
At the time of writing, Ethereum is down 2.52% in the last 24 hours according to CoinMarketCap data and is currently trading at $1,872.02. While this price point may not necessarily be an advantage for some of the early takers, the 60+% growth recorded so far in the year-to-date period can be considered a huge win for some of the interested partners. recent.
The Shapella update will create a double twist for Ethereum holders with volatility tipping to the downside more imminent in the near term.
Overview for Ethereum Post-Shapella Upgrade
Ethereum has often been touted as the only cryptocurrency with the right technology, embrace, and functionalities to surpass Bitcoin (BTC) in terms of market capitalization. There is a lot of perception around the protocol both short term and long term as of the Shapella update.
“The release of this previously unrealized investment may create significant downward price pressure if it is liquidated immediately,” Deutsche Bank analysts. said in a note to investors highlighting the massive Ethereum coins that will be released for sale.
When the immediate volatility surrounding the sell-off dissipates, there is also a projection that institutional money will flow onto the Ethereum blockchain, as investors generally seek new reward systems for their portfolios.
Ethereum’s market cap is currently about half that of Bitcoin, however, thanks to sustained adoption from both corporate and retail buyers, as well as steady token burns since the 2021 London Hardfork, Ethereum is making a comeback. single boost that can generally help boost your price. to new heights.
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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.
