Bitcoin and Ethereum saw price rallies this week, with Bitcoin crossing the $30,000 support barrier for the first time in nine months and Ethereum hitting $2,100 for the first time in eleven months thanks to the launch of the "Shapella" upgrade. Solana had the biggest rally among the top thirty cryptocurrencies, rising 16% due to the release of Saga, an Android phone powered by the Solana blockchain. Other notable rallies include Cardano, OKB, Aptos, and NEAR Protocol. The release of the latest U.S. inflation numbers by the Bureau of Labor Statistics was a key driver for Bitcoin's surge in value.
The recent upgrade of the Ethereum network from proof-of-work to proof-of-stake consensus, known as Shapella, has not led to a bearish market for ether (ETH). In fact, ETH has risen nearly 6% to over $2,000, its highest level since August. Approximately 18.3 million ETH, representing $36 billion or 15% of ether's total market capitalization, is currently staked, with 1.1 million in ETH rewards accrued. The direction of ETH deposits will be a key metric to watch in the coming weeks and months, as investors who must un-stake ETH begin the process of doing so.
Ethereum's latest software upgrade, Shapella, will allow investors to redeem over $30 billion worth of staked ether tokens that they have deposited in return for interest on the blockchain network over the past three years. The upgrade is expected to lead to heightened volatility for ether, with some investors predicting that widespread redemptions could lead to a wave of selling, in turn weighing on the price of ether. Despite its popularity in decentralized finance applications, Ethereum remains little used in mainstream commerce or finance.
The upcoming software upgrade to the Ethereum blockchain, called Shapella, will allow investors to redeem their "staked ether" worth over $33 billion in market value. The upgrade will end the indefinite lock-up period for staked coins, making it more attractive for investors to stake coins. However, some market players are concerned that unlocking staked coins could lead to massive withdrawals and a wave of selling, which could push prices rapidly lower.
Ethereum's ether has surged to a nine-month high ahead of a major network upgrade called "Shapella," which will allow owners of ether to withdraw their assets. The upgrade is expected to make the digital currency a more profitable long-term investment. The recent rally has followed a similar pattern to past bouts of enthusiasm surrounding network upgrades. In September, ethereum ran up ahead of a historic transition to a more energy-efficient way of securing the network, called proof-of-stake.
