Ethereum has delivered a very strong performance by gaining more than 10% since the Shapella upgrade.
Ether (ETH) managed a very strong shooting performance past the $2,100 level and reached a new 11-month high. As of the time of publication, ETH is trading at $2,087.83 with a market capitalization of $249 billion.
This strong price performance comes despite the withdrawal of more than 1 million ETH from the Ethereum Beacon Chain within the first four days of the Shanghai hardfork upgrade. Furthermore, all of these withdrawals occurred from around 477,805 transactions according to the Beacon Chain Keep track of.
With 392,800 ETH withdrawn, April 15 saw the largest single-day ETH withdrawal. Of the total active validators, roughly 87% or 469,000 out of 540,000, are now able to withdraw their ETH.
Prior to the Shapella upgrade, market experts had mixed opinions on how it would affect the price of ETH after the upgrade. This is due to the Shapella upgrade, which allows scammers to withdraw cryptocurrency ETH. This is the first time since the launch of the Beacon Chain that the withdrawal facility has been made available to users.
But despite some skepticism, the price of ETH rose more than 10% within four days of the Shapella upgrade. Speaking to CoinDesk, Greg Magaddini, director of derivatives at crypto analytics firm Amberdata, He said:
“The Shapella upgrade is the first time we’ve brought some life back to the Ethereum market. On Ethereum, the developers have proven they can follow through on their vision. We’ve accomplished quite a bit, so this brings credibility and validity back to Ethereum.”
Validators are giving back to Ethereum
Speaking to CoinTelegraph, Lachlan Feeney, CEO of blockchain consulting and development firm Labrys, said that auditors are pushing back on the Beacon Chain. “Much of the stake that has been withdrawn over the past few days is actually going straight back into the Beacon Chain as validators are looking to double their interests. So much so that the net stake is currently increasing,” He said Vinny.
In the current macro environment, many early stakeholders were skeptical and wanted to liquidate cryptocurrency ETH after a nearly 30-month waiting period. However, considering the medium to long-term period, Feeney expects the amount of Ether stake to increase over a period of time. This will further strengthen the Ethereum blockchain at the consensus level. he added:
“Because Chabela is a massive de-risking event, in the medium to long term Ethereum will be a bet. We expect that in the not-too-distant future, we will reach a record high level of betting Ether.”
However, note that the 1 million ETH mark is still higher than the expected withdrawal in the first week after the Shapella upgrade. According to estimates, only 170,00 ETH was expected to be unused in the first week. However, the numbers are almost 500% larger than that.
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.