Ethereum’s Successful Shapella Upgrade Sparks Surge in Demand and Prices

On April 14th, 2023, IntoTheBlock, a leading blockchain analytics firm, released a report highlighting Ethereum’s successful upgrade, dubbed Shapella, and its impact on the network’s performance. According to the report, the upgrade was seamlessly implemented, leading to a surge in demand and higher prices for ETH.

The Shapella upgrade incorporated modifications to the execution layer Shanghai upgrade, consensus layer Capella upgrade, and Engine API. The Shanghai upgrade, in particular, is a significant achievement in Ethereum’s plan as it allows stakers to withdraw both their staked ETH and any earned staking rewards, simplifying the process and appealing to more users.

As of now, some of the most relevant metrics to the Shanghai fork can be seen in the report. In the past 24 hours, there has been a total of 104,000 ETH deposited into staking, and accounting for withdrawals in the same period, the net balance is -79,834 ETH. Additionally, 868,631 ETH are currently in the queue to be processed for withdrawal, while 17,389,640 ETH are active in validating the network. Notably, Lido is the leading institution engaged in staking, with independent stakers coming in second place, followed by Coinbase, Kraken, and Binance, respectively.

Investors have responded positively to the successful implementation of the Shapella upgrade, boosting their confidence in Ethereum’s future prospects, leading to increased demand and higher prices for ETH. As reported by IntoTheBlock’s capital markets, ETH prices have exceeded the $2000 threshold, a level not achieved since May of 2022. The 30-day correlation between the Nasdaq 100 and ETH has declined from 0.88 to 0.64, indicating that ETH’s price movement is becoming less correlated with traditional equity markets.

Finally, the report states that 71% of addresses are currently holding profitable positions, indicating that the majority of ETH holders are in a position to profit from the recent price surge.

Overall, the Shapella upgrade marks a significant milestone in Ethereum’s development and has given investors renewed confidence in the network’s future prospects, resulting in higher demand and prices for ETH.

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