Ethereum (ETH) continued its recent strength on the afternoon of the 13th, a day after completing the long-awaited Shanghai upgrade. At the time of writing, ETH is up more than 5% in 24 hours near $2015.
Shanghai, or Shapella, will move from Proof of Work (PoW), which began with “Merge” in September 2022, to a more energy efficient Proof of Stake (PoS) consensus mechanism. It followed a transition.
In the weeks leading up to Shanghai/Chapella, market players were split on ETH’s price performance, with some expecting it to drop due to selling pressure and others expecting the impact to be minor and the price to rise.
In an interview with CoinDesk after the upgrade, Diogo Monica, co-founder and president of institutional cryptocurrency platform Anchorage Digital, said that investors are holding ETH stably and long-term, while supply is declining. said to lead to “There is direct on-chain liquidity, plus demand is increasing with each successful upgrade on the Ethereum network. These are the two main reasons why the price does not drop significantly,” Monica said.
Monica continued that institutional investors will be on the “wait and see” side, at least for the time being, as validators looking to withdraw ETH will be added to the withdrawal queue.
“How the withdrawal queue evolves” in the coming weeks, and “Is there a liquidity pattern that will make it safer for people who haven’t staked before to start staking?” ‘ is a question institutional investors are currently feeling, Monica continued.
Before the upgrade, Coinbase Research reported that ETH’s performance before and after Shanghai would depend more on “how the risks actually behave” than on “technical factors.”
“If risky assets are sold in a trading environment, people may decide to unstake and sell ETH to avoid risk, but institutional investors may be less aggressive on the buy side. No,” the analyst wrote.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Ether Jumps Above $2K a Day After Ethereum Shanghai Upgrade