Gemini co-founder Cameron Winklevoss commented on the upgrade, calling it “an incredible milestone” for Ethereum.
Ethereum has broken the $2,000 barrier on the heels of the Shapella upgrade, the first major upgrade to the network since the 2022 merger. The second-largest cryptocurrency is currently trading at $2,114, up 6.71% on the day and up 13.96% in 7 days, outperforming Bitcoin, which is up 2% in the last 24 hours and is now changing hands at $30,839.
The Shapella upgrade, a portmanteau of Shanghai and Capella, is the final part of the Ethereum blockchain’s transition from a proof-of-work (PoW) to proof-of-stake (PoS) consensus. The update affected the execution (Shanghai) and consensus (Capella) layers of the network, allowing ETH participants to eventually withdraw their staked deposits.
Before the upgrade, investors were curious whether Shapella would lead to more or less network usage. The bulls ended up prevailing on Thursday as the possibility of additional liquidity while earning staking rewards took precedence over profit taking.
Analyst Colin Wu reported that close to 240,000 ETH had been withdrawn 30 hours after the update and around 100,000 ETH had been deposited, putting the net stake balance at -139,000 (then valued at $277 million). . About 1.07 million ETH (roughly $2.26 billion) was pending withdrawal, 63% of that was from Kraken according to Wu. Kraken had its staking services suspended by the US Securities and Exchange Commission (SEC) in February. Wu added that Coinbase accounted for 11% of the pending ETH withdrawal, while Huobi accounted for 5.1%.
According token unlocks, about 1.11 million ETH valued at about $2.35 billion is currently pending withdrawal. The net equity balance is -158,570.
Gemini co-founder Cameron Winklevoss commented on the upgrade, calling it “an incredible milestone” for Ethereum.
Shanghai/Capella is an incredible milestone for the Ethereum network. Despite media FUD and regulatory onslaught, the brightest minds continue to build cutting-edge technology that will decentralize power structures and create a more accessible financial system for all…
—Cameron Winklevoss (@cameron) April 13, 2023
Meanwhile, the online chatter about Shapella and the subsequent price gain has increased by the hour. According LunarCrushas of April 13, 2023 7:08 pm UTC, when Ethereum was trading at $2016.77, it had 79,287 social mentions with 548.02 million total social interactions.
Technical analyst and trader Crypto Faibik believes that the alt season has officially started. Signaling Bitcoin’s permanence above $30,000 and Ether’s return above the $2,000 level, Facebook is eyeing a bearish divergence on the Bitcoin dominance chart that could lead to an altcoin rally.
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Mercy Mutanya is a technology enthusiast, digital marketer, writer, and IT business management student. She likes to read, write, do crossword puzzles, and binge-watch her favorite TV series.
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