•The Shanghai upgrade is a hard fork for the Ethereum network set to launch on February 28, 2023.
•Nansen released some key factors Ethereum investors should know before the Shanghai upgrade commences, such as total amount of ETH deposited and top stakers, prices at major ETH deposits, and selling pressure on ETH from unstakers after the Shanghai upgrade launch.
•Nansen suggests that the average deposit prices for ETH are roughly $600 resulting in an expected profit margin of around 15-20% by the time Shanghai deploys.
What is the Shanghai Upgrade?
The Ethereum Shanghai Upgrade, also known as ‘Shapella’, is a hard fork for the Ethereum network slated to launch on February 28, 2023. After transitioning to a Proof of Stake mechanism last September, validators became an important part of the ecosystem requiring 32 ETH to be a validator on the network. The Shanghai upgrade will enable withdrawal of staked ETH from the Ethereum Beacon chain.
Key Factors Investors Should Consider Before Launch
On February 22nd, Nansen released some key factors Ethereum investors should consider before Shanghai launches including:
• Total amount of ETH deposited and top stakers
• Prices at major ETH deposits
• Selling pressure on ETH from unstakers after launch
Lido Plays Crucial Role in Decentralization
Data from Nansen shows that Lido Finance currently holds 29.5% of all total deposited ETH while other platforms like Coinbase, Kraken and Binance combined account for only 26%. This makes Lido a crucial platform in terms of decentralization so as to shield against any centralized censorship wrath during transition.
ETH Deposit Prices Impacts Profit Margins
As per Nansen’s data, average deposit prices for Etheruem are roughly $600 resulting in an expected profit margin between 15-20% by the time Shanga deploys. This price range could potentially have an impact on mass withdrawals when deployment takes place.
With less than 2 weeks left until launch day, there still remains uncertainty surrounding how exactly this transition will affect investors with regards to their profits margins or selling pressure post-launch date. Nevertheless understanding key factors such as total amount of deposits and top stakeholders’ figures along with deposit prices can help investors make more educated decisions going into this new era for Ethereum blockchain technology