Ethereum, the second-largest cryptocurrency, had a significant network update on April 13, 2023, known as the Shanghai Upgrade. The upgrade permits ETH holders to unstake their assets, providing them with more access to their holdings.
This event has had a positive effect on the network and ecosystem, as seen by the continued expansion of Ethereum’s total unique addresses and daily volume of active Ethereum addresses to new record highs.
The Ethereum Improvement Proposal (EIP) 4895 is the most important component of this update since it allows validators who staked 32 ETH to unstake their Ether. The network is currently secured with 18 million ETH. Since the introduction of EIP-1559 in July 2021, almost 2 million ETH valued at $6 billion have been burned, transforming ETH into a deflationary asset.
Prior to the upgrade, Ether was trading at $1,429. On the day of the upgrade, its value soared to $2,000, a 36% rise in a month. The upgrade is anticipated to lower gas fees during times of high network activity, attract more newcomers to the ecosystem, and release demand from Ethereum fans.
Since July 2021, when EIP-1559 was introduced, ETH has transformed into a deflationary asset, burning over 2 million ETH worth $6 billion.
Experts do not anticipate a wave of selling pressure from the Shapella Upgrade, despite the huge amount of ETH pledged to safeguard the network. Instead, it is anticipated that the upgrade will unleash demand from Ethereum enthusiasts and attract more newcomers via earned media coverage in the press and on social media.
