Ethereum surges after successful launch of historic update

The Ethereum network has successfully launched the historic Shanghai-Capella update. Amid the positive news, the value of the main altcoin increased by 2.3%.

According to CoinGecko, Ethereum is currently trading at $ 1914 with a market capitalization of $ 230 billion.

The main updates of the Shapella update include the ability to withdraw funds from staking and optimization of commission costs (gas). From the perspective of the project’s tokenomics, the innovations will allow the second largest cryptocurrency to remain a deflationary asset, which will be an additional factor for ETH growth in the long run.

Shapella will make Ethereum staking more flexible and thus more attractive to users. Compared to other leading cryptocurrencies that use the Proof-of-Stake consensus mechanism, ETH has a relatively low percentage of coins blocked in staking.

For comparison, Solana’s figure is 72%, Cardano has 66.9% of its total supply in staking, and Avalanche has 62%. Thus, many more ETH holders can potentially become validators of the network.

It is worth noting that Ethereum has become the best blockchain in the Crypto 40 rating. In addition, in the DeFi category, the top 5 best projects are based on Ethereum, which turned out to be the undisputed leader of the entire ranking.

In addition to developers and industry experts, many investors are also betting on the promising future of Ethereum. Thus, venture capitalist and partner at Placeholder Chris Burniske is convinced that the cryptocurrency market will continue to grow in the near future, and the ETH rate will reach $ 10,000. «Earlier, skeptics did not believe in ETH at $ 1, then $ 10, $ 100, and $ 1,000, but we have seen these peaks. Now they refuse to believe in ETH at $ 10,000. Well, we’ll see you there,» the analyst emphasized.