Ethereum Shanghai schedule next month; Will unstaking 14% ETH affect the second largest market cap asset?
Ethereum Shanghai is one of the most anticipated upgrades taking place next month (March), this upgrade will allow validators to unstake their staked ethereum from the blockchain, it is roughly estimated around 16 million ethereum have been staked since December 2020 which is currently worth around $26 billion, which is quite considerable amount of capital when you look at today's current ethereum total market cap from Coinmarket cap which rounds up above $200 billion.
With 14% of staked ETH that has been inaccessible to validators for years will this be the perfect opportunity for these validators to sell their long holdings or perhaps continue with their staking when upgrade has been completely implemented?
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What Is Ethereum’s Shanghai EIP-4895 upgrade?
The Ethereum Shanghai upgrade, also known as Ethereum 2.0 or ETH 2.0, is a planned network upgrade to the Ethereum blockchain. It aims to improve the scalability security and sustainability of the Ethereum network through a transition from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. The upgrade also introduces several new features and improvements, including sharding, which enables the Ethereum network to process more transactions per second. The Ethereum Shanghai upgrade is a significant milestone in the evolution of Ethereum and is expected to have a major impact on the cryptocurrency and decentralized application (Dapps) ecosystem.
Will unstaking ethereum from Shanghai upgrade affect price of ethereum
The price of Ethereum can be influenced by a variety of factors, including market demand, regulatory changes, and technological developments. Unstaking Ethereum from the Ethereum Shanghai upgrade could potentially have an impact on the price of Ethereum, but it would likely be just one of many factors affecting its value.
The Ethereum Shanghai upgrade is expected to bring many benefits to the Ethereum network, including increased security, scalability, and sustainability. As a result, it is possible that the demand for Ethereum could increase, leading to an appreciation in its price. On the other hand, if a large number of individuals or entities were to unstake their Ethereum all at once, it could potentially increase the supply of Ethereum and put downward pressure on its price.
In short, the impact of unstaking Ethereum on the price of Ethereum would depend on a variety of factors and would be difficult to predict with certainty. It is always important to consider the market conditions and other factors that may impact the price of any asset before making investment decisions.
Final thoughts
With ethereum having an unlimited supply nothing much can be predicted when the Shanghai upgrade has been finalized, certainly some validators would perhaps take profit from their long term investment while others will still bet on longing their staking holds.
With the Shanghai upgrade affect ethereum market supply after the upgrade implementation let's watch out for the month of March.
I believe that since Ethereum does not have a Max Supply it could see massive selling action in the short term
Sure, good point made and validators as well are waiting to take profit.
greetings @mccoy02
any upgrade is necessary to improve the current condition , I certainly believe that in the long run it will benefit the market.
Sure, it will ethereum have been upgrading it blockchain which is good for crypto space.