This altcoin activity has increased with Shanghai, as daily fees on the blockchain have more than doubled in the last month, according to the report. As Kriptokoin.com, we have compiled the expectations for this altcoin for you.
Increase observed for this altcoin
In a research report on Monday, Bernstein said that Ethereum is witnessing much healthier on-chain activities, with the recent release of a minigame by Yuga Labs, with the growing interest in NFTs.
The report noted that daily fees on blockchain have more than doubled since the start of the year, from around $2 million to $4 million – $6 million. Ethereum (ETH) has gained about 35%. Bernstein notes that ether inflation has remained negative for more than two weeks in anticipation of more on-chain activity and demand and more deflation.
“We believe BTC [bitcoin] and ETH remain relatively clean here and will gradually see conviction-based spot positioning,” analysts Gautam Chhugani and Manas Agrawal wrote. The note states that the next major catalyst for Ethereum remains the Shanghai upgrade until mid-March, when the withdrawal of staked Ether will be activated.
According to the report, as 70% of staked ETH is managed through liquid staking pools such as LIDO or by exchanges, some caution may be exercised when entering this event due to concerns about the supply from unstacked Ether. The remaining Ethereum is invested directly into the token chain and is unlikely to be of short-term ownership. In the report, it was also stated that the event could be approached with caution, but that ‘as the fears subsided, the belief in holding on in the spot markets increased’.
What is the significance of the Shanghai hard fork?
The EIP-4895 is the main focus of the upgrade, as stakers may want to start cashing out the rewards they’ve earned over the past two years, or they may want to have more control over their funds given the uncertainty in the crypto markets in the past.
But aside from accessing locked funds, the PoS blockchain has not been fully utilized since going live. While the blockchain is functioning properly today, stakers have had to commit to keeping their funds locked in order to keep Ethereum running.
Now with the mechanism to unlock staked ETH, the full functioning of a proof-of-stake blockchain will come to life, meaning that stakers can finally have control over their funds and decide what they want to do with their rewards.
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