Will Ethereum’s “Shanghai” update cause its price to fall?
There is only a short time left until the Shanghai update of the Ethereum blockchain. The most prominent change expected after this update will be the activation of the ability to withdraw staked Ethereums in the Ethereum 2 smart contract.
According to Valx and quoted by Cryptopotato, nearly 16 million Ether with a value of more than 21 billion dollars are currently locked in the Beacon Chain deposit contract. Naturally, with the activation of the possibility of withdrawing these assets, the question that arises is whether there will be a strong selling pressure ahead?
One concern is that some investors have staked their Ethers for a long time and want to realize their profits from staking rewards and Ethereum price increases. However, a look at the on-chain data shows that the average cost price was only 5,000 Ether, lower than the current price of this digital currency. Data from the Lookonchain service confirms that the average cost price of currently locked Ethereum is around $2,260.
Although this will not mean that investors will not be willing to sell their assets – even at a loss – it will certainly reduce the possibility of its spread.
Also, another important point is that there is a strong possibility that the withdrawal will not be released at once and there will be a queue for withdrawal.
The post “Shanghai” update of Ethereum will cause its price to fall? The first time in the blog Valx. appeared.