Would You like a feature Interview?
All Interviews are 100% FREE of Charge
ether The digital currency surged to a nine-month high this week ahead of a major network upgrade that some crypto enthusiasts say would make the digital currency a more profitable long-term investment.
The world’s second-largest cryptocurrency has risen about 6% over the past three days, surpassing $1,900, while bitcoin has remained largely flat.
Starting next Wednesday, a blockchain upgrade called “Chappella” will allow Ether holders to withdraw their assets. Until this point, investors should use a centralized exchange such as: coin base Or, use a decentralized finance (DeFi) protocol like Lido to exchange essentially locked-up Ether for tokens of equal value.
The recent rise follows a similar pattern to past frenzy around network upgrades. In September, Ethereum made a historic move to a more energy efficient way to secure its network called Proof of Stake.
Ethereum previously had a vast network of miners around the world running highly specialized computers that processed mathematical equations to validate transactions. After the so-called “merge” upgrade in September, Ethereum moved to a proof-of-stake system, swapping miners for validators. Validators leverage existing caches of Ether as a means of validating transactions and creating new tokens, instead of running a large bank of computers.
Ethereum Foundation researcher Danny Ryan said of the September upgrade that “Ether itself will become a productive asset.” “It’s not just speculation, but it’s something you can profit from.”
In the post-merger era, Ethereum took on some characteristics of traditional financial assets and paid interest to its holders.
“Probably the least risky return within the Ethereum ecosystem,” Ryan said, adding that yields in other corners of DeFi include smart contracts and other types of counterparty risk. added.
Ether Has Underperformed So Far This Year BitcoinBitcoin is up 70% in 2023, but Ether is up nearly 59% this year.
the current, Over 18 Million Ether Tokens In other words, 15% of the total supply of Ether is considered as locked assets.
Upcoming upgrades will unlock much of that value and give owners more control over their assets, but I doubt the release of so many tokens will flood the market. About $2.4 billion worth of Ethereum could hit the public market even with withdrawal caps, K33 Research said in a note on Tuesday.
Ilya Volkov, who runs a blockchain-based fintech platform, said, “With a large amount of ETH unlocked and many people selling ETH, it is likely that there will be a sharp drop immediately after the upgrade is completed.” said he was bullish in the long term.
The ratio of open interest in Etherput to call options reached its highest level since May on Tuesday, according to data released by crypto data analytics and news firm The Block. may indicate an increase.
According to Bernstein research, nearly 70% of the 18 million Ether tokens locked on the blockchain are staked through protocols like Lido, gauging investor liquidity.
“70% liquidity in staked ETH is not new, it is possible anyway,” wrote Bernstein. The firm describes his remaining 30% of holders as “original followers” and said he is unlikely to sell his position at this price.
The ability to deposit and withdraw tokens could encourage more investors to stake Ether, with some analysts proving that wagered money can be withdrawn relatively easily. If so, we anticipate significant capital inflows into the network.
clock: Bitcoin rises as investors brush off regulatory concerns