#Ethereum Shanghai upgrade

[ankikarekar9]

[manfrommars2049]

2/2 work for Consensys. Ethereum Shanghai Upgrade. by Marcel Deneuve via ImaginaryCityscapes

[camerxn]

Ethereum Shanghai Upgrade 1/2 & 2/2 by Marcel Deneuve

[coindhan02]

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Is It Good To Buy ETH in 2023?

Macro factors like galloping inflation, Fed interest rate hike, oil and food crisis, Ukraine-Russia war gave ripples down the spine to crypto investors in 2022. However the silver-lining beyond the dark clouds have started to surface after bank busts in 2023 and Ethereum’s new upgrades making the next market buzz around. With that being said, Eth has been rocking and rolling above the $1500 levels for quite some time despite the market panic.

The recent Capella and Shanghai event have given fresh impetus to Eth’s demand and we should be going long on ETH for 2023 for the given few reasons;

Top Reasons To Invest in ETH in 2023

The Merge Catalysts

How does an asset derive its value? It derives its value through the utility and scarcity it creates. Post the Merge event, in contrast to the number of ETHs which were produced prior, the numbers have dropped significantly. For example, in comparison to the PoW consensus that created 13,000 Ether per day, the post Merge scenario has brought those numbers to 1300, allegiance to EIP 1559 that burns a part of the gas fees after each block.

With that said, ETH is slowly inching towards becoming ultrasound money. The major trade-off is that at the backdrop of shady practices by the TradFi, users might pivot to DeFi, and Ethereum holds majority of the DeFi, setting a new narrative as a go to ecosystem for building the next face of finance.

Layer 2’s on Fire

Undoubtedly high gas fees were a pressing challenge that the Ethereum chain has dealt with ever since its inception. We have had our share of challenges when the crypto kitty event happened. However Vitalik Buterin took cues from such incidents and moved towards layer 2. Optimism and Arbitrum provided the much needed leverage to Ethereum; however, their computational integrity despite being fast and efficient has often been questioned.

On that note, ETH’s pivot to ZK or Zero Knowledge Proof systems might set-up a new narrative. Vitalik has already said that Sharding and the Merge are watershed moments in ETH’s journey but it will be the layer 2’s that shall carve a new way ahead for massive adoption. Polygon, which is the preferred layer 2 scaling solution for Ethereum, has recently launched ZKeVM which shall give more leverage to such claims. Hence setting a positive narrative for ETH to rage inferno in the coming days.

[ilucyliu-blog]

Bernstein: Ether primed for breakout ahead of Ethereum's Shanghai upgrade.

Ether Breaking Out Ahead of Ethereum’s Shanghai Upgrade: Bernstein “Following Ethereum’s highly anticipated Shanghai upgrade slated for April 12th, ether has witnessed a staggering 6% surge over the last twenty four hours, indicating early indications of formidable resilience against bitcoin, according to distinguished cryptocurrency analysts Gautam Chhugani and Manas Agrawal.” The surge in…

[coineagle]

Unraveling Ethereum’s Future: How ETH Whales Affect Its 2019 Repeating Pattern

Key Points

Ethereum’s price action is mimicking its 2019 pattern, potentially indicating an upswing.

Whales continue to accumulate Ethereum, with negative netflows on derivative exchanges suggesting reduced selling pressure.

Ethereum [ETH] is the second-largest cryptocurrency, with market sentiment transitioning from bearish to bullish as we approach the end of 2024.

The price action of Ethereum is showing a pattern similar to 2019 on the ETH/USD pair, characterized by an ascending wedge.

Price Pattern Analysis

The higher lows of the current cycle’s wedge are tenfold larger than those seen in 2019. In 2019, Ethereum’s price fell below its ascending wedge prior to the first Federal Reserve rate cut, a situation parallel to the current scenario in 2024.

After the 2019 rate cut, both ETH/USD and ETH/BTC hit bottom, forming a strong confluence. The expectation is that the current pattern will repeat this success, with the price likely to drop below the wedge, capture liquidity before reversing to the upside in late Q4 2024 or early Q1 2025.

However, if the price remains below the ascending wedge for a prolonged period, further analysis might be necessary to adjust strategies or mitigate potential losses.

Whale Accumulation and Exchange Netflows

Whales, or Ethereum’s largest holders, are playing a significant role in supporting this expected upward movement. They have been steadily accumulating more ETH since 2019, a trend that intensified after the Shanghai upgrade in early 2023.

Currently, whales control over 43% of Ethereum’s circulating supply, closing in on the 48% held by retail investors. This accumulation suggests that these major players anticipate Ethereum’s price to rise over time.

Ethereum’s exchange netflows data showed that the negative netflow on derivative exchanges has exceeded 40,000 ETH. This indicates more ETH is being withdrawn from these exchanges and transferred to cold wallets, suggesting a decrease in selling pressure.

Traders may be preparing for long-term gains, indicating that the current decline in Ethereum’s price might be a temporary correction, potentially setting the stage for a significant upward movement.

Ethereum ETF Update

While some negative net-flows in Ethereum ETFs have been observed, there are positive signs. ETH ETFs, including Fidelity’s, have seen inflows over the past 24 hours. Grayscale’s ETHE experienced the largest and the only outflow.

The overall positive sentiment surrounding ETFs could potentially support Ethereum’s future price growth.

[blockinsider]

Potential US Ether ETFs Listing Sparks Ethereum Price Surge

Key Points

Ethereum’s price has bounced back, potentially due to the anticipated listing of US-based spot Ether ETFs.

The Ethereum network continues to gain traction, supporting businesses through its Web3 ecosystem and tokenizing real-world assets.

Ethereum’s (ETH) price has recently seen a resurgence, bouncing back from the lower limit of a four-month consolidation period at around $2,864. This has helped to negate further corrections. The top-tier altcoin, which has a fully diluted value of approximately $403 billion and a daily average traded volume of around $20 billion, has drawn significant interest from both retail traders and institutional investors.

The Ethereum network has also demonstrated its reliability as a platform for tokenizing real-world assets, while simultaneously supporting a growing number of businesses through its Web3 ecosystem.

US-Based Spot Ether ETFs

Rumors of the final approval for US-based spot Ethereum exchange-traded funds (ETFs) have fueled the altcoin’s FOMO. According to recent updates, the United States Securities and Exchange Commission (SEC) has issued preliminary approval to at least three of the eight asset managers seeking to offer spot Ether ETFs.

Significantly, the three spot Ether ETF applicants – BlackRock, Franklin Templeton, and VanEck – are set to begin trading their products as early as Tuesday. Eric Balchunas, a senior ETF analyst at Bloomberg, stated that the US SEC has asked the spot Ether ETF issuers to return final S-1 files before the following day in preparation for the forthcoming week’s launch.

As was observed with the spot Bitcoin ETFs, the official launch of the spot Ether ETFs in the United States is likely to trigger a war over sponsor fees in the upcoming weeks. Furthermore, competition among the spot Ether ETF issuers is intense for the same market.

Meanwhile, the remaining spot Ether ETF issuers, including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy, are also preparing to launch their products by next week.

Impending Supply Crisis

The Ethereum network has seen a significant surge in new addresses recently. The notable mainstream adoption of Ethereum-based web3 projects has contributed to the overall bullish outlook.

At the moment, the Ethereum network has a total value locked of approximately $58 billion and a stablecoins market cap of around $79 billion. According to data analysis by Dune, over 33 million Ether has already been staked by around 1 million validators.

Since last year’s Shanghai upgrade, over 12.8 million Ether have been invested in the staking program. Meanwhile, more than 4.3 million Ether, worth about $12 billion, have already been burned in an effort to make Ethereum deflationary.

With the impending spot Ether ETFs, the Ether supply crisis is expected to intensify in the following months.

Price Expectations for Ether

Given the positive fundamentals and the technical standpoint, it is reasonable to suggest that Ethereum’s price is on the verge of a significant bull run in the near future. According to veteran trader Peter Brandt, Ethereum price is targeting at least $5,600 after rebounding from the lower border of the four-month consolidation.

[samdrews]

Shixing “Discus Fish” Mao, co-founder of Cobo and F2pool, shared his 2023 cryptocurrency predictions. He discussed interest rates, FTX, Digital Currency Group (DCG), Ethereum, and the overall cryptocurrency cycle. Mao believes that barring any major "black swan" events or worsening macroeconomic conditions, the bear market has bottomed out.

He expects a significant upward trend in cryptocurrencies in 2023, noting that the large-scale DCG liquidation poses no considerable risk and that the situation will not escalate further. Mao is confident that the tens of thousands of Bitcoin assets tied to DCG will not be forcefully liquidated.

Mao also highlighted Ethereum's potential to surpass a historic mark in March and Q4. The Ethereum Foundation has nearly confirmed the Shanghai upgrade for March 2023, which should mitigate staking liquidity risks. Several L2 projects, particularly ZK-based ones, plan to launch testnets or mainnets in Q3 or Q4 2023.

Two key events to watch are the next Bitcoin halving, just 470 days away, which could usher in a new market phase by the end of 2023, and the overall cryptocurrency market cycle, which typically features long bull and short bear markets. Mao believes the current bear market phase is ending, and investor confidence will soon be restored. Interest rate cycles might create market opportunities in Q2 and Q4 of 2023.

[drewssam]

How Will the Shanghai Upgrade Revolutionize Ethereum LSD?

The Shanghai Upgrade is ushering in a new narrative surrounding Ethereum Liquid Staking Derivatives (LSD), with projects like Stakewise and Stafi emerging as leaders in this space. Despite capturing a significant market share, their market caps remain under $20 million, indicating substantial growth potential.

However, challenges persist in their tokenomics, with a considerable portion of the token supply still locked. Unlocking team and investor allocations, as well as liquidity mining rewards, is essential for these projects to realize their full potential as viable investment options.

Investors must exercise caution and conduct thorough research due to associated risks. Yet, with a deep understanding of these projects, investors can capitalize on their growth potential while minimizing losses. The market share/market cap ratio of Ethereum LSD, standing behind market leader Lido, underscores its potential.

The Shanghai upgrade presents an opportunity for significant LSD adoption in the long run, with a current staking ratio of only 14%, indicating room for liquidity and market cap expansion. Despite risks, Ethereum LSD offers immense potential for investors who navigate wisely.

In conclusion, Ethereum LSD holds promise to transform Ethereum token investment, driven by low staking requirements and a competitive market share. As the Shanghai upgrade unfolds, the narrative surrounding LSDs is poised for substantial growth in 2023, offering both opportunities and risks for savvy investors.

[p5ravin]

Comprehending the Ethereum Dencun Upgrade and Its Consequences.

The Ethereum network has consistently taken the lead in implementing updates to improve scalability, security, and sustainability. An upcoming significant development is the Ethereum mainnet Dencun (Deneb and Cancun) upgrade, scheduled for Q1 2024. This upgrade, eagerly anticipated since the Shanghai update, is poised to be a milestone for Ethereum, especially with the inclusion of the widely discussed "proto-danksharding" feature.

Current Stage of Dencun Upgrade: Initiated in 2022 with an initial target for Q4 2023, the Dencun upgrade's foundation was laid but faced delays to 2024 due to technical complexities. Scheduled for March 13-16, the mainnet upgrade has successfully undergone testing in the Georli testament and the second testnet, Sepolia, with the Holesky test on February 9th. Expectations are high regarding the impact of this final stage release on Ethereum's future.

Ethereum Cancun-Deneb (Dencun) Upgrade: The Dencun upgrade introduces significant changes to the execution and consensus layer, offering an enhanced solution for scalability, particularly for smart contracts and decentralized applications (dApps). Merging Cancun and Deneb, the upgrade encompasses nine imminent Ethereum Improvement Proposals (EIPs).

Ethereum EIPs for Dencun Upgrade: The Dencun upgrade will introduce nine EIPs, each playing a unique role in enhancing Ethereum's functionality. Examples include EIP-1153, focusing on reducing smart contract execution costs, and EIP-4788, catering to liquid staking. EIP-4844 (proto-danksharding) introduces blob-carrying transactions for layer 2 rollups.

Proto-Danksharding: Proto-Danksharding, embodied in EIP-4844, addresses key challenges in the Ethereum network by introducing "blobs" for more efficient block processing. Danksharding involves dividing a block into smaller, manageable portions. Proto-Danksharding extends this concept to smart contracts, significantly reducing transaction costs in Layer 2 protocols.

Impact of Dencun Upgrade on Investors and Traders: Investors stand to benefit from the Dencun upgrade in various ways. The enhanced scalability promises quicker and more efficient transactions, reducing congestion and increasing token liquidity. The introduction of new instructions and EIPs could lead to reduced transaction fees, benefiting traders. Overall stability and security improvements contribute to a more reliable Ethereum ecosystem.

Conclusion: The Ethereum Dencun upgrade signifies a crucial step toward scalability and sustainability. With its potential to enhance transaction efficiency, reduce costs, and improve overall network performance, Ethereum aims to establish new standards. The heightened market excitement, evident in increased network activity and price highs, underscores the anticipation surrounding this impactful upgrade.

[dencyemily]

Decoding Ethereum's Dencun Upgrade: Unveiling its Significance and Impact

Ethereum, a trailblazer in blockchain technology, is set to redefine its capabilities with the eagerly anticipated Dencun (Deneb and Cancun) upgrade scheduled for Q1 2024. This landmark upgrade, slated for March 13-16, introduces groundbreaking features, notably the "proto-danksharding," making it a pivotal moment for the Ethereum network since the Shanghai update.

The Journey to Dencun Upgrade:

The Dencun upgrade's foundation was laid in 2022, initially targeting a Q4 2023 release. However, due to technical complexities, the developer community postponed it to 2024. The upgrade has progressed through successful tests, including the Georli testament, Sepolia, and Holesky, with the mainnet release on the horizon.

Understanding the Ethereum Cancun-Deneb (Dencun) Upgrade:

The Dencun upgrade stands out for its transformative impact on the execution and consensus layer, offering improved scalability and efficiency for smart contracts and dApps. Combining elements from Cancun and Deneb, the upgrade incorporates nine Ethereum Improvement Proposals (EIPs), each contributing to Ethereum's evolution.

Key Ethereum Improvement Proposals (EIPs) for Dencun Upgrade:

EIP-1153: Focuses on reducing smart contract execution costs, optimizing calculations, and enhancing scalability.

EIP-4788: Addresses liquid staking and staking, embedding the parent beacon block root into every execution block, enhancing trust.

EIP-4844 (Proto-Danksharding): Introduces "blobs" for layer 2 rollups, significantly reducing transaction processing time and gas fees.

EIP-5656: Enhances efficiency in data movement to the EVM with the introduction of MCOPY.

EIP-6780: Changes the functionality of the SELFDESTRUCT opcode, preserving data for the Ethereum network's future.

EIP-7044: Allows signed voluntary exits to be valid forever, simplifying staking.

EIP-7045: Extends attestation inclusion slots for increased speed and security.

EIP-7514: Caps the per-epoch churn limit to control the growth rate of Ethereum validators.

EIP-7516: Enhances chain trustability by introducing BLOBBASEFEE instruction.

Unlocking the Power of Proto-Danksharding:

Proto-Danksharding, introduced by Ethereum researcher Proto Lambda, revolutionizes Ethereum's transaction processing. By dividing blocks into manageable "blobs," the technique significantly improves efficiency, reducing transaction costs in Layer 2 protocols and bringing Ethereum closer to its scalability goals.

How the Dencun Upgrade Benefits Investors and Traders:

Enhanced Scalability: The upgrade promises improved user experience with increased transaction throughput and reduced congestion, enhancing liquidity and utility for ETH investors.

Reduced Fees: Multiple EIPs and new instructions are expected to decrease transaction fees, particularly benefiting frequent traders and decentralized application users.

Network Security and Stability: The Dencun upgrade contributes to a more robust Ethereum ecosystem, fostering trust among investors through enhanced security and stability.

The Market Impact of Ethereum Dencun Upgrade:

The impending Dencun upgrade has set new standards, reflected in Uniswap's plan to launch v4 post-upgrade. In the "Code Freeze" phase, Ethereum developers focus on core code completion, testing, and security upgrades. The Ethereum ETF on the horizon and support from Coinbase signal increased network activity and excitement for Ethereum's future.

As Ethereum strives to reduce transaction costs and elevate user experience, the Dencun upgrade stands as a testament to Ethereum's commitment to innovation and sustainability in the blockchain realm. Investors and traders are poised for a transformative period as Ethereum unlocks new possibilities with Dencun.

[cryptosticss]

Ethereum Faces Rejection As Bulls Liquidate $3.5 Million In Positions! Is ETH Price Set For A Correction?

[infifashion]

What is Ethereum Merge?

Introduction

One of the biggest and most well-known cryptocurrencies, Ethereum, has seen a dramatic change known as the Ethereum Merge. The Ethereum network's functionality and underlying technology have been completely transformed by this update. Through the merging, the existing proof-of-work (PoW) consensus method will give way to a proof-of-stake (PoS) consensus mechanism, which is more effective and ecologically friendly.

Understanding the Ethereum Merge

The core component of Ethereum 2.0, the Beacon Chain, will be integrated with the current Ethereum mainnet as part of the Ethereum Merge. The Beacon Chain uses a proof-of-stake consensus mechanism and was put into use in December 2020.

It is in charge of overseeing the validator nodes and organising the Ethereum network's consensus. The Ethereum network hopes to maintain the current features and uses of the Ethereum ecosystem while gaining access to the scalability and energy efficiency of the PoS consensus mechanism by combining the Beacon Chain with the Ethereum mainnet.

Why is The Merge important?

For the Ethereum network, the merge is very important for a number of reasons. It first tackles the scalability issues that the existing proof-of-work system is facing. PoS consensus improves network throughput overall, speeds up transaction processing, and lessens congestion. The increased scalability of Ethereum presents opportunities for its wider adoption and practical uses.

Ethereum's shift to proof of stake

The Ethereum Merge is a significant change from proof of work to proof of stake in the underlying consensus process. Miners must solve challenging mathematical puzzles as part of Proof of Work in order to validate transactions and safeguard the network. Proof of Stake, on the other hand, depends on validators who keep and "stake" their Ethereum holdings as security in order to approve and suggest new blocks.

Compared to Proof of Work, Proof of Stake has a number of advantages. By providing financial incentives, it lowers the risk of centralization, does away with the requirement for pricey mining equipment, and increases network security.

What is the Shanghai Upgrade?

An essential part of the Ethereum Merge is the Shanghai Upgrade. This update, which takes its name from the Ethereum Foundation's Devcon Shanghai event, attempts to integrate the Ethereum mainnet and the Beacon Chain. The groundwork for Ethereum's shift to a proof-of-stake consensus mechanism will be laid by the merging of these two elements.

The Ethereum network has undergone numerous technological advancements and improvements as part of the Shanghai Upgrade. It entails the deployment of the Beacon Chain fork, which permits Ethereum 2.0 and the Ethereum mainnet to coordinate and synchronise.

Risks of the Ethereum Merge

Even though the merger offers a lot of advantages and prospects, it's important to think about the possible hazards involved with such a significant network improvement. The potential for unforeseen technical difficulties during the shift is one of the main dangers. Careful preparation and testing are necessary to achieve a smooth integration and preserve network security while integrating the Beacon Chain with the Ethereum mainnet.

The effect on already-existing Ethereum-based smart contracts and decentralised apps (dApps) is another possible concern. It will be up to developers to check if their apps work with the new consensus process and make any necessary modifications.

[metamoonshots]

The Ethereum blockchain validator queue has cleared for the primary time for the reason that Shanghai improve in Could, based on a analysis report from Coinbase. The drop means that investor demand for ether (ETH) staking could stabilize. Validators play a vital function in verifying transactions on the Ethereum blockchain by committing ether in trade for rewards. The Shanghai improve launched the power to withdraw staked ether for the primary time. Ethereum Staking Yields Decline to three.5% As validator participation peaked over latest months, staking yields have declined from over 5% to three.5%, based on the report. The analysts famous that the yield on staked ether units a benchmark for various crypto investments, offering a foundational facet for the crypto ecosystem. Coinbase anticipates that if community exercise and transaction charges stay steady, the staking yield will seemingly stay steady now that the expansion of validators has slowed. Exercise on the Ethereum mainnet remained constant within the third quarter, with a rise in whole roll-up transactions. The report additionally highlighted that with no main Ethereum protocol upgrades till Dencun, which is anticipated within the first half of 2024, no vital technical catalysts are anticipated to impression on-chain exercise until there are main new protocols or vital hacks. The Dencun improve will incorporate 5 Ethereum Enchancment Proposals (EIPs) to supply extra information storage and cut back charges on the blockchain. Staking Demand Drops Sharply Some market individuals counsel that the lowering ready occasions could signify a decline in demand for staking. It’s price noting that the demand for ETH staking surged when the Shanghai improve launched in April, with institutional traders depositing 3 times the quantity in comparison with the earlier month. Whereas the demand for staking ETH appears to have tapered off, the variety of lively validators has elevated. Present information signifies round 857,000 lively validators on the community, with roughly 22% of the cryptocurrency’s provide staked. The counterintuitive numbers might be as a result of rising recognition of liquid staking platforms equivalent to Lido and Rocket Pool, which collectively maintain a Complete Worth Locked (TVL) of $15 billion. JPMorgan’s analysts suggest that Ethereum’s efficiency put up the Shanghai improve may have been influenced by exterior elements inside the crypto atmosphere. These embody bearish tendencies within the general crypto market, setbacks in tasks like Terra and FTX, and regulatory actions in the USA. These occasions have led to uncertainty and warning amongst traders and customers. SPECIAL OFFER (Sponsored) Binance Free $100 (Unique): Use this link to register and obtain $100 free and 10% off charges on Binance Futures first month (terms).PrimeXBT Particular Provide: Use this link to register & enter CRYPTOPOTATO50 code to obtain as much as $7,000 in your deposits.