Shanghai Upgrade Spurs Institutional Buying
Early indications suggest that institutional investors’ interest in staking has increased as a result of Ethereum’s flawless Shanghai upgrade.
According to Michiel Milanovic, an analyst at Ethereum blockchain development company ConsenSys, top institutional-grade ETH (ETH) staking service providers have already seen nearly a threefold increase in inflows in April compared to the entire previous month. He noted that once the Shanghai upgrade went online on April 12 approximately 80% of the inflows occurred.
Starting on April 12, the highly anticipated Shanghai or Shapella upgrade for Ethereum allowed for the withdrawal of roughly 18 million tokens, totaling $35 billion, that had previously been locked up in staking contracts. After the upgrade, ETH’s price rallied to $2,100, its highest level in 11 months, defying earlier concerns the unlocking could lead to significant selling pressure and a price crash. The token recently has dropped below $1,900, aligning with a broader crypto market decline.
(With inputs from Shikha Singh)
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