Ethereum sank 19% after the Merge but investors are all excited about the next updates: Shanghai, Surge, Verge, Purge, and Splurge
Even though the anticipation of the Merge had propelled ether price by 85% compared to its June levels, the altcoin has fallen since Sept. 15 along with other cryptos as investors shy away from risky assets. Nevertheless, Reuters reports that many market players are bullish about the long-term prospects of Ethereum and its native cryptocurrency.
The first issue of the blockchain – high energy consumption – is solved with the Merge. Now, crypto investors are now turning their attention to the next event that could boost ETH trading position. It is called “Shanghai” and would happen around six months’ time. The event is aimed at reducing Ethereum’s high transaction costs.
“Shanghai” would allow validators, who have deposited ether tokens on the blockchain in exchange for a yield, to withdraw, hold or sell their staked coins. The change is crucial since over $20 billion of ether deposits are currently locked up.
The staked ether crypto coin cannot be redeemed until Shanghai happens. However, it is already trading at near parity with ether at 0.989 ETH, indicating confidence in future upgrades and long-term success.
As soon as Shanghai takes place, more upgrades are planned for Ethereum. Those are “the surge”, “verge”, “purge” and “splurge”. Their primary focus will be on the blockchain’s ability to process more transactions.
While the proof-of-stake transition paves the way for lucrative yields, critics point out that the biggest validators could now exercise greater influence over the blockchain, endangering its decentralization.