Ethereum is awaiting its biggest upgrade since the Merge, which is called The Shanghai upgrade, also known as Shapella. It will enable users to unlock their staked ETH. This has been locked up since the “deposit contract” went live in 2020. Many predict this event could force major selling pressure on ETH. The Shanghai upgrade will bring with it a range of new features and improvements. These include the ability to stake in different currencies, improved scalability, faster transaction speed, and changes to smart contract execution on Ethereum’s EVM (Ethereum Virtual Machine). With these updates, developers will be able to create more complex applications on Ethereum and make transactions much quicker.
This event is being seen as one of the most significant developments in the world of blockchain technology this year. It could have a huge impact on not only ETH but also other cryptocurrencies. By allowing developers to create apps much faster and easier, they can bring more innovation into the space which could lead to an increase in adoption. Additionally, investors may have more confidence when investing due to the increased security, speed, and scalability of the network.
Different analysts have given various comments on the amount of ETH selling pressure that could result from the Ethereum blockchain’s Shanghai upgrade.
The Shanghai update
The Shanghai update is a very important milestone moment in Ethereum’s evolution. It was designed to improve scalability and security, faster transaction speed, and changes to smart contract execution on Ethereum’s EVM (Ethereum Virtual Machine). It will provide other benefits.
It is possible that the upgrade will cause some short-term market instability, but in the end, it should benefit all Ethereum users. Blockchain Data is warning that some big investors could be planning on selling large amounts of ETH even before the upgrade and that could possibly lead to a market crash. Overall, Ethereum’s upcoming big upgrade is expected to bring significant improvements in scalability and security.
Despite some potential risks that come along with any major changes, the long-term effects should be positive for Ethereum users.