Ethereum, the world’s second-largest cryptocurrency, has recently undergone a major upgrade called Shanghai. This upgrade has unlocked staking rewards, which many people believe is a bullish sign for the markets, despite what some may think.
At first glance, one might assume that unlocking staking rewards would cause people to withdraw their coins immediately, leading to a bearish market. However, this assumption overlooks the fact that many people who stake their coins do not plan on immediately unlocking them. Instead, they use staking providers like Lido and Rocket Pool to gain liquidity even before their coins are unlocked on the main chain.
The Shanghai upgrade has been a success, and it could lead to an increase in the total number of staking coins. People who previously hesitated to stake their coins due to the fear of not being able to unlock them may now feel more confident in doing so. This increased staking activity could be a positive sign for the markets, as it demonstrates a greater commitment to the Ethereum ecosystem.
Furthermore, the Shanghai upgrade has introduced several other improvements to the Ethereum network, such as reducing the gas fees required for transactions. This reduction in fees is another positive sign for the Ethereum market, as it makes the network more accessible to a wider range of users.
In conclusion, the Shanghai upgrade is an exciting development for the Ethereum community. The unlocking of staking rewards may seem like a bearish signal at first, but it actually represents a greater level of confidence in the Ethereum ecosystem. The success of this upgrade could lead to increased staking activity and a more accessible network, which could ultimately lead to a more bullish market.
It’s worth noting that Ethereum made a significant change back in September 2022 when it switched from proof-of-work (PoW) to proof-of-stake (PoS). This change means that Ethereum is now a stake coin, which has several advantages over PoW coins. For example, PoS is more energy-efficient and can handle a greater number of transactions. Additionally, with PoS, stakers have a greater say in the governance of the network.
Most popular ETHASH Asic miners :
As a result of this change, some popular ETHASH ASICs are no longer able to mine Ethereum, but they can still mine other coins like ETC and ETHW. This change has led to some shifts in the mining landscape, but overall, it has been a positive move for Ethereum. The shift to PoS has been in the works for several years, and it represents a significant step forward for the network.