{"id":74165,"date":"2023-02-16T07:00:00","date_gmt":"2023-02-16T05:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74165"},"modified":"2025-09-09T18:31:35","modified_gmt":"2025-09-09T15:31:35","slug":"how-the-shanghai-upgrade-will-affect-ethereums-price","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/how-the-shanghai-upgrade-will-affect-ethereums-price\/","title":{"rendered":"How the Shanghai upgrade will affect Ethereum&#8217;s price"},"content":{"rendered":"<p>Around March 2023, Ethereum <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-team-targets-tentative-date-for-shanghai-hard-fork-activation\">awaits<\/a> an important upgrade \u2014 Shanghai. It, in significance, ranks only behind <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-activates-the-merge-blockchain-shifts-to-pos\">The Merge<\/a>, which moved the second-largest cryptocurrency to the <a href=\"https:\/\/u1f987.com\/en\/news\/proof-of-stake-how-it-works-and-why-it-is-so-popular\">Proof-of-Stake (PoS)<\/a> consensus algorithm.<\/p>\n<p><!--more--><\/p>\n<p>The forthcoming upgrade will enable users to withdraw ETH from the Beacon Chain deposit contract and is expected to bring a number of system improvements.<\/p>\n<p>Many members of the community are concerned about potential downward pressure on Ethereum&#8217;s price due to the option opening. Some believe that the upgrade will negatively affect tokens of <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-liquid-staking\">liquid staking<\/a> services such as <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-lido\">Lido<\/a> and the market more broadly.<\/p>\n<p>Are there grounds for concern? How will the upgrade affect Ethereum&#8217;s price and prospects? ForkLog has looked into these questions.<\/p>\n<div class=\\\"wp-block-text-wrappers-keypoints article_keypoints\\\">\n<ul class=\\\"wp-block-list\\\">\n<li>The crypto community broadly views Ethereum&#8217;s future prospects after the Shanghai upgrade with optimism. This is evident from the faster growth in total value locked (TVL) in staking services like Lido and Rocket Pool, as well as the rise in the prices of their utility tokens, including <span data-descr=\\\"total value locked in the smart contracts of decentralized applications\\\" class=\\\"old_tooltip\\\">TVL<\/span>.<\/li>\n<li>The withdrawal process after the upgrade will be dynamic, depending on many factors. It is unlikely that a flood of ETH will hit the market all at once.<\/li>\n<li>Before depositing into the Beacon Chain&#8217;s deposit contract, many stakers purchased Ethereum above its current market price. It is highly likely that most investors will avoid realising losses.<\/li>\n<\/ul>\n<\/div>\n<h2 class=\\\"wp-block-heading\\\">Shanghai on the Horizon<\/h2>\n<p>The Shanghai upgrade envisions implementing a suite of Ethereum Improvement Proposals (EIPs). The key one, <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-4895\\\">EIP-4895<\/a>, will allow withdrawals from staking. This option has been unavailable since the launch of Phase 0 of the system&#8217;s second version in 2020.<\/p>\n<p>With the upcoming hard fork, developers also expect to implement <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-3540\\\">EIP-3540<\/a>, <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-3670\\\">EIP-3670<\/a>, <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-4200\\\">EIP-4200<\/a>, <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-4750\\\">EIP-4750<\/a> and <a href=\\\"https:\/\/eips.ethereum.org\/EIPS\/eip-5450\\\">EIP-5450<\/a>, aimed at implementing the <span data-descr=\\\"EVM Object Format\\\" class=\\\"old_tooltip\\\">EOF<\/span> format. The latter would enable validating smart contracts and making changes during deployment.<\/p>\n<p>If implementing EOF proves too complex, the rollout will be pushed to autumn 2023. In the meantime, another upgrade is planned that will enable EIP-4844. It is expected to bring in much of the logic and formats from the concept of danksharding.<\/p>\n<p>Recently, developers <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-developers-implement-a-shadow-fork-of-the-shanghai-upgrade\">have implemented<\/a> a shadow Shanghai fork to test the planned upgrade&#8217;s impact on the mainnet.<\/p>\n<p>During testing, several issues arose due to an incorrect configuration of the Geth client. After fixes, all nodes operated in consensus.<\/p>\n<p>On February 1, <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-launches-testnet-to-test-eth-withdrawal-from-the-beacon-chain\">the Zhejiang testnet launch took place<\/a> to verify ETH withdrawals from the Beacon Chain deposit contract.<\/p>\n<p>The hard fork in the testnet <a href=\\\"https:\/\/www.galaxy.com\/research\/insights\/ethereum-all-core-developers-execution-call-152\/\\\">is expected in February<\/a>.<\/p>\n<h2 class=\\\"wp-block-heading\\\">Rally of Liquid-Staking Tokens<\/h2>\n<p>Against the backdrop of the upcoming major upgrade, the governance token of the leading liquid-staking platform Lido Finance <a href=\"https:\/\/u1f987.com\/en\/news\/lido-finance-token-climbs-on-shanghai-hard-fork-announcement\">is showing solid growth<\/a>. In January, LDO rose by <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/lido-dao\\\">more than 130%\\<\/a>. Its market cap surpassed $2 billion. <\/p>\n<p>Lido Finance rose to the top in DeFi Llama&#8217;s ranking, overtaking veteran TVL leader \u2014 the MakerDAO platform <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-makerdao-mkr-and-the-dai-stablecoin\">MakerDAO<\/a>.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"482\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/1-DeFi-Llama-4-1024x482.png\\\" alt=\\\"1-DeFi-Llama-4\\\" class=\\\"wp-image-198097\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/1-DeFi-Llama-4-1024x-482.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/1-DeFi-Llama-4-300x141.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-DeFi-Llama-4-768x361.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/1-DeFi-Llama-4.png 1367w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Data from <a href=\\\"https:\/\/defillama.com\/chain\/Ethereum\\\">DeFi Llama<\/a> as of 15.02.2023.<\/figcaption><\/figure>\n<p>Lido Finance enables users to earn by staking crypto assets such as Ethereum, Polygon and Polkadot.<\/p>\n<p>The most popular token on the service is Ethereum. In exchange for assets locked in the Beacon Chain, users receive stETH tokens, which can be employed in other DeFi protocols. Lido Finance is popular with retail investors who do not hold the required 32 ETH or the knowledge to operate as a validator.<\/p>\n<p>Rising sharply is also the RPL token \u2014 <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/rocket-pool\\\">up more than 100% in January<\/a>. Rocket Pool positions itself as a decentralised protocol that pairs stakers with node operators within a single system. To participate, operators must hold 16 ETH (half the amount required for a Beacon Chain validator) and a small amount of RPL.<\/p>\n<p>Given the growing prices of such cryptoassets, the market is broadly welcoming the upgrade. Shanghai could boost liquidity for staking coins and reduce the uncertainty factor\u2014users will know the withdrawal timelines.<\/p>\n<h2 class=\\\"wp-block-heading\\\">Impact on ETH Price<\/h2>\n<p>According to <a href=\\\"https:\/\/academy.binance.com\/en\/articles\/what-is-the-ethereum-shanghai-upgrade-and-how-will-it-affect-me\\\">Binance Academy analysts<\/a>, the upcoming upgrade will affect the share of coins that are staked relative to ETH in circulation.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cIn turn, this could alter the supply-and-demand balance for Ethereum,\u201d the researchers noted.<\/p>\n<\/blockquote>\n<p>Among skeptics, there is a view that the market will be flooded with ETH after the upgrade, potentially triggering a price drop.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cWhile some expect increased selling pressure, others are optimistic that the upgrade will spur demand for Ethereum staking, as new options and services become available,\u201d noted the Swiss crypto bank Sygnum\u2019s analysts.<\/p>\n<\/blockquote>\n<p>Activating Shanghai will allow investors to unlock blocked ETH for the first time since 2020. However, experts believe mass withdrawals are unlikely to occur all at once; the process is dynamic and depends on multiple factors.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">1\/ Unlike other PoS networks like Cosmos that have a fixed withdrawal period for stakers, set at 21 days, Ethereum\u2019s is dynamic based on how many validators are exiting at a given time.<\/p>\n<p>\u2014 Westie \ud83d\udfea (@WestieCapital) <a href=\\\"https:\/\/twitter.com\/WestieCapital\/status\/1613645216514465792?ref_src=twsrc%5Etfw\\\">January 12, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>There are two withdrawal options:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li><em>Partial<\/em>, applicable to funds on the balance above 32 ETH. In this case the validator remains in the Beacon Chain, participating in the consensus mechanism;<\/li>\n<li><em>Full \u2014<\/em> the validator exits the network, no longer participating. The remainder (32 ETH and rewards) are unlocked in full.<\/li>\n<\/ul>\n<p>As Ethereum.org explains, under the second option the validator takes a place in a withdrawal queue. The queue length depends on the total number of participants. The higher the total, the more users can withdraw their assets in a single epoch.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cSuch a limit helps maintain system stability by controlling how many validators can exit at once. After all, validators secure Ethereum,\u201d the Sygnum team emphasised.<\/p>\n<\/blockquote>\n<p>After clearing the queue, participants move to the next stage \u2014 the \u201cwithdrawal period.\u201d<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThe duration of this period varies with the number of validators attempting to withdraw simultaneously. It could take from a few hours to weeks, possibly months,\u201d the crypto-bank experts explained.<\/p>\n<\/blockquote>\n<p>Thus, the mechanism described above makes a substantial price drop unlikely. Nonetheless, forecasting the price of Ethereum post-Shanghai remains uncertain.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cETH may experience short-term volatility \u2014 that is normal around a significant event,\u201d the analysts forecast.<\/p>\n<\/blockquote>\n<p>Lookonchain analyst is confident that investors need not fear selling pressure after Shanghai. By his calculations, the average price at which ETH is deposited into the Beacon Deposit Contract is $2,260.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">With the coming of <a href=\\\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Ethereum<\/a> Shanghai upgrade, some investors worry that opening staking withdrawals will put selling pressure on <a href=\\\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$ETH<\/a>.<\/p>\n<p>We analyze investors who deposit less than 5000 <a href=\\\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$ETH<\/a>, and the average price they deposit <a href=\\\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$ETH<\/a> to Beacon Deposit Contract is $2,260. <a href=\\\"https:\/\/t.co\/l3eK1eJQM5\\\">pic.twitter.com\/l3eK1eJQM5<\/a><\/p>\n<p>\u2014 Lookonchain (@lookonchain) <a href=\\\"https:\/\/twitter.com\/lookonchain\/status\/1612432047825637381?ref_src=twsrc%5Etfw\\\">January 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>That suggests rational market participants are unlikely to dump the withdrawals at a loss. <\/p>\n<p>Independent researcher Tripoli <a href=\\\"https:\/\/dataalways.substack.com\/p\/partial-withdrawals-after-the-shanghai\\\">noted<\/a> that withdrawals will require credentials with a prefix of 0x01, \u201cnot installed by early validators.\u201d Their transition from 0x00 is \u201climited to 16 operations per block.\u201d<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cSo far, about 20% of new validators do not set 0x01. This is likely those following outdated guides, as well as centralised organisations that have not updated their procedures,\u201d Tripoli emphasised.<\/p>\n<\/blockquote>\n<p>According to his observations, Lido is most active in deploying the corresponding data type.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThe liquid-staking provider holds 88% of the eligible credentials. It controls more than 60% of all validators prepared for automatic withdrawals,\u201d the researcher noted.<\/p>\n<\/blockquote>\n<p>He believes this situation is a positive factor for the network and only \u201cnaive observers\u201d would bring up centralisation debates.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cHeavy adoption of [0x01] will cause a bottleneck in the partial withdrawal queue. That will dampen the scale of the initial withdrawal spike,\u201d Tripoli shared.<\/p>\n<\/blockquote>\n<p>Estimates by the expert suggest that on the first day after activation Shanghai could see around 110,000 ETH withdrawn through partial withdrawals (excluding Lido validators with 0x01 credentials).<\/p>\n<p>That figure stands in sharp contrast to the na\u00efve models that predicted 400,000 ETH per day.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cGiven that the set of non-Lido validators includes most centralised platforms and alternative liquid-staking derivatives, it is reasonable to expect these validators will sell only a portion of their rewards. It is unlikely this scenario will spell catastrophe for the market,\u201d the researcher said.<\/p>\n<\/blockquote>\n<h2 class=\\\"wp-block-heading\\\">Untapped Potential<\/h2>\n<p>As of 06.02.2023, only 14.25% of Ethereum&#8217;s circulating supply is staked (the Staking Ratio). This is a fairly low figure compared with other popular PoS blockchains such as Cardano or Solana.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"755\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/2-Staking-Rewards-1-1024x755.png\\\" alt=\\\"2-Staking-Rewards-1\\\" class=\\\"wp-image-198101\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/2-Staking-Rewards-1-1024x755.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/2-Staking-Rewards-1-300x221.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/2-Staking-Rewards-1-768x566.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/2-Staking-Rewards-1.png 1157w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Data: <a href=\\\"https:\/\/www.stakingrewards.com\/\\\">Staking Rewards<\/a>.<\/figcaption><\/figure>\n<p>Following the March upgrade, the situation should begin to shift. The gap illustrated above is likely to gradually narrow as Ethereum staking is perceived as less risky.<\/p>\n<p>It is also plausible that a substantial portion of ETH unlocked by EIP-4895 will flow into DeFi protocols. This could revive the DeFi sector, lift its total TVL, and likely bolster the broader market recovery.<\/p>\n<p>In liquid-staking protocols, roughly ~6.87 million ETH valued at $11.3 billion (DeFi Llama data as of 06.02.2023) is deployed. <\/p>\n<p>By comparison, 16.64 million ETH worth about $26 billion are locked in the Beacon Chain deposit contract (as of 15.02.2023). This figure has risen by about 25% over the past six months and by 77% over the past year.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"285\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/ETH-Deposited-to-BC-and-Validators-1024x285.png\\\" alt=\\\"ETH-Deposited-to-BC-and-Validators\\\" class=\\\"wp-image-198102\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/ETH-Deposited-to-BC-and-Validators-1024x-285.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/ETH-Deposited-to-BC-and-Validators-300x83.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/ETH-Deposited-to-BC-and-Validators-768x214.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/ETH-Deposited-to-BC-and-Validators.png 1496w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Total validators and ETH deposited to the Beacon Chain. Data from <a href=\\\"https:\/\/dune.com\/obol_labs\/eth-staking-ecosystem\\\">dune.com<\/a> as of 10.02.2023.<\/figcaption><\/figure>\n<p>The sizable discrepancy points to substantial upside for derivatives like stETH and the TVL of corresponding platforms.<\/p>\n<p>The upcoming upgrade could also positively affect utility tokens of liquid-staking protocols \u2014 LDO, RPL, ANKR and SWISE. <\/p>\n<p>Analysts at Sygnum also foresee stronger demand for decentralised services like Rocket Pool. Rocket Pool\u2019s TVL has risen roughly twofold over the past two months and has already <span data-descr=\\\"\u043f\u0440\u0435\u043e\u0434\u043e\u043b\u0435\u043b \u0440\u0443\u0431\u0435\u0436 \u0432 $1 \u043c\u043b\u0440\u0434\\\" class=\\\"old_tooltip\\\">passed the $1 billion mark<\/a>.<\/span><\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"177\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL-1024x177.png\\\" alt=\\\"3-Rocket-Pool-TVL\\\" class=\\\"wp-image-198103\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL-1024x177.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL-300x52.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL-768x133.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL-1536x265.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/3-Rocket-Pool-TVL.png 1708w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Rocket Pool TVL dynamics. Data: DeFi Llama, <a href=\\\"https:\/\/www.theblock.co\/data\/decentralized-finance\/total-value-locked-tvl\/value-locked-in-liquid-staking\\\">The Block<\/a>.<\/figcaption><\/figure>\n<p>The share of Rocket Pool in liquid staking sits at 5.64%. The perennial leader, Lido, accounts for 73.51%.<\/p>\n<figure class=\\\"wp-block-image size-full\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/4-TVL-ETH-LSDs.webp\\\" alt=\\\"4-TVL-ETH-LSDs\\\" class=\\\"wp-image-198104\\\"\/><figcaption>Share of various liquid-staking services within total TVL. Data from DeFi Llama as of 09.02.2023.<\/figcaption><\/figure>\n<p>The chart below shows that liquid-staking services hold the largest share of assets (45.8%) in the Beacon Chain&#8217;s deposit contracts.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"354\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/5-Beacon-Chain-Depositors-1024x354.png\\\" alt=\\\"5-Beacon-Chain-Depositors\\\" class=\\\"wp-image-198105\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/5-Beacon-Chain-Depositors-1024x354.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/5-Beacon-Chain-Depositors-300x104.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/5-Beacon-Chain-Depositors-768x265.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/5-Beacon-Chain-Depositors.png 1166w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Share of different market participants in total staking assets. Data: <a href=\\\"https:\/\/dune.com\/obol_labs\/eth-staking-ecosystem\\\">dune.com<\/a>.<\/figcaption><\/figure>\n<p>Whales hold 20.2% of the stake, while centralised exchanges hold 15.4%.<\/p>\n<p>Analysts at Sygnum expect many platforms to expand their functionality, such as with <span data-descr=\\\"the MetaMask wallet\\\" class=\\\"old_tooltip\\\">MetaMask<\/span> wallets. They also anticipate continued growth in ETH staked and the number of validators in the network. The latest 2022 figure rose by 79%, reaching 495,252 by December.<\/p>\n<p>Binance Academy analysts believe opening withdrawals will generally have a positive effect and \u201cmake the ETH market more fluid.\u201d In their view, holders will be better positioned to respond to supply and demand to achieve market equilibrium.<\/p>\n<p>JPMorgan <a href=\"https:\/\/u1f987.com\/en\/news\/jpmorgan-shanghai-hard-fork-and-ftx-collapse-are-positive-for-coinbase\">is convinced<\/a> that the Shanghai factor is positive for Coinbase. The bank\u2019s researchers estimated that 95% of clients would express interest in Ethereum staking after the upgrade.<\/p>\n<p>According to their forecast, the \u201cnew era\u201d could add an additional $225\u2013545 million to Coinbase&#8217;s current annual ETH staking revenue (estimated at $50 million at the time of writing).<\/p>\n<h2 class=\\\"wp-block-heading\\\">Conclusions<\/h2>\n<p>The Shanghai upgrade marks a significant step in the development of the second-largest cryptocurrency. Yet ahead lie <a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-unveils-updated-ethereum-development-roadmap\">several milestones<\/a> aimed at solving the perpetual scaling challenge and making Ethereum quantum-resistant.<\/p>\n<p>After withdrawals from staking are enabled, ETH staking should become more attractive due to higher liquidity. For instance, activity in the ecosystem could increase among those who did not use services like Lido and Rocket Pool for various reasons.<\/p>\n<p>According to crypto investor and blogger Lark Davis, the number of holders of the second-largest cryptocurrency grew by 263% in 2022. This bodes well for Ethereum and positive sentiment around upcoming upgrades.<\/p>\n<p>Few can predict the price of Ethereum and related tokens after Shanghai with precision. Yet any meaningful upgrade is likely to bring heightened volatility.<\/p>\n<p>One thing is certain: Ethereum and many other crypto assets should rise in value as the market recovers, and much will depend on the successful implementation of the upcoming upgrade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Around March 2023, Ethereum is due for an important upgrade\u2014Shanghai. In significance, it ranks only behind The Merge.<\/p>\n","protected":false},"author":1,"featured_media":74166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"5","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[46,268],"class_list":["post-74165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-ethereum","tag-hardfork"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"5","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=74165"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74165\/revisions"}],"predecessor-version":[{"id":74167,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74165\/revisions\/74167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/74166"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=74165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=74165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=74165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}