In addition, Etherscan has learned to show information about the number of staking withdrawals in each block. This allows us to understand the scope of the findings.
The update was a positive development for the cryptocurrency, whose rate exceeded $2,100 for the first time in a long time. Against this background, Ethereum became the growth leader among top coins by market capitalization on a daily basis. Here is the corresponding table.
What will happen to the broadcast after the update?
The current Shanghai update may lead to a noticeable increase in the “appetite” for Ethereum on the part of professional institutional investors. In short: in the long term, ETH’s price growth potential looks even better than the expectations of many cryptocurrency enthusiasts.
However, first, let’s go back a little in the history of the most popular altcoin. In particular, last year Ethereum worked on the Proof-of-Work (PoW) consensus algorithm. Accordingly, the extraction of ETH and the creation of blocks was carried out by miners, who needed expensive equipment with huge energy consumption to carry out their activities.
The activation of the Shanghai update put an end to the fears of many investors regarding the possibility of withdrawing coins from the smart contract. This also significantly improves the liquidity of the entire ecosystem, which attracts large investors, says Anchorage Digital co-founder Diogo Monica.
In an interview with Decrypt representatives, Monica noted that previously large investors had little interest in staking ETH due to the inability to withdraw coins from the deposit smart contract. There is an alternative solution in the form of platforms that issue their tokens as collateral for the ethers sent for staking. But such a strategy is not suitable in scale for large investors.
He added that the move would also attract large funds focused on an ESG investment strategy. Yet in September 2022, Ethereum became much more energy efficient. Nowadays, validators need nodes that consume 99.95 percent less electricity than crypto farms of miners. Accordingly, this is a much more beneficial option from an environmental point of view.
It looks like Ethereum ETH has indeed become a more attractive investment for capital holders. Now they can contact one of the most liquid cryptocurrencies, send coins for staking to receive a good income, and at the same time be confident that if something happens, they can get the digital asset back relatively quickly. So ETH really makes a lot more sense.