Ethereum's Shapella Upgrade - What to Expect?

Transcript

but Shanghai really represents kind of taking off the training wheels of of ethereum's proof of State consensus protocol and allowing withdrawals to happen the other big thing that's coming up next week is the chapel upgrade this is going to be perhaps the most important Market event of the year and it might well fundamentally alter ethereum's price Dynamics the Shanghai upgrade also known as ship it's just around the corner here's what you need to know for this upcoming hard Fork of ethereum since the since staking was enabled on ethereum which surprise was enabled back in December 2020 two years before the merge even happened people were not able to withdraw their stake so

the validator life cycle could only get to the point where you can exit the network stop validating on ethereum but you couldn't actually move your staked e back into your wallet or move it to an exchange or really do anything with it and this was sort of like the training wheels of ethereum's stake blockchain and for and up until now like I would say those treating wheels are still on the stuff that people are fighting about on Twitter regarding it is sort of the polemics of what we were talking what we wrote about the polemics being like everyone's going to withdraw it's going to have no security it's over they're going to withdraw and sell because they've been locked up for X number of months that's one side of the argument the other side is everyone is hodling

forever uh and and if if this doesn't remind you of like Bitcoin happening events it's it's sort of like Bitcoin happening events had the same level of polemicism right the reason for the two names Shanghai and capella stems from the fact that now the ethereum protocol consists of two layers the execution layer and the consensus layer the execution layer will undergo the Shanghai upgrade while the consensus layer is known as capella developers are cleverly referring to the whole thing as chappella developers right people say I don't understand why this takes so long why don't they just put that into previous upgrades developers are all about minimizing risk one of the biggest questions is what will happen to the price of eth after chappella I think

there's not going to be a big impact on price um I think the piece that I mentioned about um you know the impact of of Shanghai on each price goes into this a little deeper but based on the amount of trading volume there is behind each on a daily weekly basis if you just assume that 30 to 50 percent of rewards will be immediately sold after Shanghai like in the days following Shanghai it doesn't have a huge impact on the market one theory is that a successful Network upgrade will actually get more people to deposit because there are investors who are simply waiting on validation of technical success before depositing their ether if that's true obviously it will reduce the amount of circulating

ether at a time when The Ether Supply is already shrinking due to uh Burns and obviously this would buoy price I do think though that the staking activity that the amount of people coming into staking will have a have a larger impact on ethereum as a network I think that if we see more institutions staking if we see more retail staking I think that we could see what is currently 15 of total eats Supply stake like double by the end of the year in addition to the price what can we expect from ethereum's roadmap in the coming months spoiler the key word is scalability ethereum is trying to scale through layers it's

trying to move execution of smart contracts user activity two layer two Roll-Ups that can then very cheaply be able to submit and batch user transactions the countdown has begun Chappelle is almost here do you have any doubts or questions about this next ethereum upgrade leave us your thoughts in the comments foreign