Next Stop “Shanghai” — Ethereum's Large-scale Upgrade Approaches

2023-03-20, 06:58

Ethereum has been upgrading and plans to launch the “Shanghai” upgrade in the first half of 2023.

Last year, the major “Merge” upgrade was conducted, transforming from PoW (Proof of Work) to PoS (Proof of Stake).

The upgrade changes the mining proof to a validation process, addressing the international issue of mining energy consumption.

The voting rewards for Ethereum‘s PoS will be locked out before the next upgrade, but the next upgrade plan code “Shanghai” has been put on the agenda.

Based on the “Shanghai” upgrade, 16.5 million ETH validators, which account for approximately 13% of all ETH total, will be unlocked.

This will lead to short-term selling pressure on ETH, but the average purchase price of ETH using the PoS mechanism is considered to be $2,400 and is currently in a loss state.

In this case, the probability of all locked ETHs being sold is relatively low.

In addition, even if there is short-term selling pressure, the increase in projects using ETH is sufficient to consider the possibility of their value rising.

Author: Peperon

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