Anticipating Bearish Market Behavior Following Ethereum Shanghai Upgrade Unstaking, Reduced Dependence On Lido For Liquid Staking, And Conclusion Of Big Eyes Coin Presale Offering Generous Bonus
The Shanghai upgrade – also known as the Shapella upgrade – was completed by Ethereum on Wednesday. This update has a significant impact on Ether, the cryptocurrency it supports, as it enables those who hold Ether to withdraw their coins that had been locked up for staking rewards. Since last year’s “Merge” upgrade, this is the most substantial change to occur on the Ethereum blockchain.
Shanghai Upgrade Successfully Addresses Ethereum’s Merge Issue
The “Merge” upgrade led to a problem where holders who had staked Ether could not unlock their coins, creating liquidity concerns. As of Wednesday, only about 15.6% of the total Ether supply was staked, a notably lower percentage than competing cryptocurrencies like Solana, Avalanche, and Polkadot, which have staking rates of 40% to over 70%. This discrepancy suggests differences in investor behavior and sentiment across various blockchain ecosystems, according to David Lawant, Head of Research at FalconX.
According to Lawant, the Shanghai upgrade has successfully addressed the staking problem and could potentially encourage more investors, especially institutional ones, to engage in staking. However, staking carries risks, including penalties and the removal of staked coins for validators who validate transactions incorrectly or go offline. Despite the successful upgrade, the process of unstaking Ether is time-consuming, and investors must join a queue to withdraw their original coins and rewards. The processing time depends on the number of withdrawal requests being processed simultaneously.
QCP Capital analysts hold a less optimistic view on the potential bullish scenario for the Shanghai upgrade. They suggest that Ether holders at the front of the withdrawal queue may sell their coins, while those further back may hedge their positions using perpetual futures and other derivatives. This could lead to bearish price action as different strategies are employed by Ether holders based on their position in the withdrawal queue.
Lido’s Role in Ethereum’s Liquid Staking System Decreases with Shanghai Upgrade
Lido DAO (LDO), a popular liquid staking solution for Layer 1 chains like Ethereum, has experienced a significant decrease in activity in recent days. Following Ethereum mainnet’s merger with the P-o-S Beacon chain, Lido gained widespread attention and adoption, driving up the price of LDO to over $3 in a short amount of time.
However, with the upcoming withdrawal of locked ETH, the dependence on Lido’s liquid staking platform has greatly diminished. Traders previously staked their ETH, which was locked with ETH 2.0 smart contracts, into other protocols using Lido, allowing the tokens to be converted into a liquid form. But with the upcoming Shanghai upgrade, users will no longer need to use Lido for liquidating their assets.
Big Eyes Coin’s Presale Nears Conclusion, with June 3 Deadline
In spite of the market’s unstable nature, the Big Eyes Coin (BIG) venture is still attracting attention and support, as investors eagerly await the launch of its token on an exchange. The team responsible for Big Eyes Coin has confirmed that the presale will conclude on June 3rd. The digital asset has already made history by becoming the largest meme coin presale to date, raising over $33 million in funds, which has impressed numerous investors. This achievement demonstrates the growing interest in meme-inspired cryptocurrencies and emphasizes the potential for such projects to attract significant investment and support from the cryptocurrency community.
The Big Eyes Coin (BIG) team has recently introduced its most significant and best bonus code to date, and it is now available for use. By entering the code “END300,” you can take advantage of an amazing 300% bonus for a limited time only. This means that $1,000 will now get you $4,000 worth of BIG tokens! With the launch of Big Eyes approaching, now is the perfect time to start your bull run with this exciting project.
Purchasing BIG tokens during the presale has never been simpler, as you can use various cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, USDT-TRC20, USDT-ERC20, BUSD, and DOGE. And if that isn’t enough, you’ll soon be able to use TRX as well. Keep track of your tokens on the dashboard, and once the presale is over, you’ll be able to redeem them from the dashboard to the wallet where you made your purchase.
Big Eyes Coin (BIG)
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Website:https://bigeyes.space/
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Disclaimer : The above is a sponsored article and the views expressed are those of the sponsor/author and do not represent the stand and views of The Tribune editorial in any manner.
