Upcoming Ethereum upgrade in Shanghai and increase in the number of ETH holders

Recent data from Glassnode, the on-chain metrics monitoring platform, reveals a significant increase in the number of wallet addresses holding Ethereum (ETH) tokens. According to Glassnode, the number of addresses holding at least 0.01 ETH coins has reached an eight-month high of 23,386,372. This information covers only Externally Owned Addresses (EOAs) and does not include contracts.

The Ethereum (ETH) resurgence is one of the biggest crypto stories of 2023. Along with Bitcoin, Ethereum has led the cryptocurrency rally this year, with ETH trading at $1,754, reflecting a 46.11% profit since the beginning of the year.

The Upcoming Shanghai Upgrade

Several factors have led to Ethereum’s increased adoption, including the upcoming Shanghai upgrade. The Shanghai upgrade is an adjustment to the Ethereum protocol that will allow users to unstake their staked ETH. This means that they can withdraw ETH tokens that have been locked up for validation purposes on the Ethereum network. Although there is yet to be an official date, users expect the upgrade to happen sometime in April 2023.

Benefits of the Shanghai Upgrade

The Shanghai upgrade is expected to introduce flexibility in the staking process, allowing ETH stakers more control over their tokens. This is one of the main attractions of the new staking model compared to what is offered in many other networks in the blockchain industry. Other general benefits of the Shanghai upgrade include boosting transaction speeds for Ethereum network users while offering lower gas fees.

How the Shanghai Upgrade Impacts ETH Holders

The Shanghai upgrade is expected to increase the demand for ETH tokens. This is because ETH holders will have more control over their tokens and can unstake them whenever they want. This could lead to a decrease in the number of ETH tokens that are locked up for validation purposes on the Ethereum network. As a result, the supply of available ETH tokens could decrease, leading to an increase in the price of ETH.

Ethereum’s Future

Ethereum’s future looks bright with the upcoming Shanghai upgrade, which is expected to improve the efficiency and speed of transactions on the network. This will make the network more attractive to developers and users, further increasing the adoption of ETH.

Conclusion

In conclusion, the increase in the number of wallet addresses holding ETH tokens is a positive indicator for the future of Ethereum. The upcoming Shanghai upgrade is expected to bring many benefits to the network, including flexibility in the staking process and faster transaction speeds. This upgrade is expected to increase the demand for ETH tokens, leading to a potential increase in price. Ethereum’s future looks promising, and the network continues to lead the cryptocurrency market.

FAQs

Q. What is the Shanghai upgrade, and how does it benefit Ethereum users?

A. The Shanghai upgrade is an adjustment in the Ethereum protocol that will allow users to unstake their staked ETH, meaning that they can withdraw ETH tokens locked up for validation purposes on the Ethereum network. This upgrade will introduce flexibility in the staking process, allowing ETH stakers more control over their tokens, and is identified as one of the main attractions for ETH stakers.

Q. How does the increase in the number of addresses holding significant amounts of ETH affect the cryptocurrency market?

A. An increase in the number of addresses holding significant amounts of ETH indicates that more people are interested in holding and investing in Ethereum. This can potentially lead to a rise in the demand for ETH and, in turn, an increase in its price.

Q. Is Ethereum a good investment in 2023?

Ethereum has been one of the leading cryptocurrencies in terms of adoption and price performance in 2023. However, like any investment, there are risks involved. It is crucial to do your research and invest only what you can afford to lose.

Q. What is the difference between externally owned addresses (EOAs) and contracts?

A. Externally owned addresses (EOAs) are user-controlled addresses that hold cryptocurrencies like ETH. Contracts, on the other hand, are self-executing programs that execute certain actions when specific conditions are met.

Q. How does the Shanghai upgrade impact Ethereum’s environmental impact?

A. The Shanghai upgrade will not have a significant impact on Ethereum’s environmental footprint as it is not related to the consensus algorithm that powers the network. The Ethereum network has already transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus algorithm, which significantly reduces the network’s energy consumption.

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