Called Shanghai, the next major Ethereum upgrade is, in short, necessary to risk the release of ethers (ETH). Previously scheduled for release in March, the update is now scheduled for April.
The announcement was made last Thursday at an Ethereum developers meeting (2).
“People should expect the update on Goerli [testnet do Ethereum] happen on the 14th, Tuesday”said Tim Beiko, developer of Ethereum. “On the next call, we can talk about the mainnet update, but people shouldn’t expect it to happen in 3-4 weeks compared to [a atualização] at Gorli.”
Regarding Goerli, Beiko refers to the Ethereum testnet where its token was valued by 1,500%. On the date, the same developer warned about the risks of this investment as this token has an expiration date.
What is the Shanghai Update?
Also called Shapella, a mix of Shanghai and Capella, the delay of this update was heavily criticized, even by an Ethereum co-founder. Last September, Charles Hoskinson claimed that Ethereum was becoming a prison.
Since Ethereum migrated to Proof-of-Stake, no investor can withdraw their coins locked into this so-called staking system.
Therefore, one of the biggest changes of the Shanghai update is related to the release of these ethers (ETH). However, it’s worth noting that six months have passed since The Merge and no such update has an exact date.
Should the Shanghai Update Affect Ethereum Price?
While many believed that Ethereum would skyrocket with the new monetary policy in The Merge, including Vitalik Buterin himself, Ethereum has since lost 5% of its value.
According to the Ethereum website itself, there are 17,267,075 ETH (R$141 billion) worth of coins in the trap, yielding 4.8% per year. Therefore, the release of this amount, possibly in the coming month, could create significant selling pressure in the market.
However, other analysts see the update as positive. For example, according to JPMorgan, the ability to withdraw staking coins could attract even more buyers, who could use such a system, and this would skyrocket the price of ETH.
Anyway, everyone is looking forward to the date of the Shanghai update, now also called Shapella. At the very least, we can expect a moment of volatility as the market decides whether or not it will be favorable in the near term.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
