Ethereum Shanghai Update Gives Native Tokens A Boost In Price
March 29 2023 - 2:00PM
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After several postponements, a date has finally been set for the
Ethereum Shanghai upgrade, which will allow for the withdrawal of
staked ETH on several platforms. According to the Ethereum
Foundation’s latest note, the Shanghai upgrade is set to be
activated by 6:30 pm UTC on April 12, 2023. This latest update on
the Shanghai upgrade has given native tokens of staking projects
such as Lido DAO (LDO), Frax Shares (FXS), and Rocket Pool (RPL) a
bullish momentum. Over the past 24 hours, these tokens have surged
by over 10%, respectively. LDO, FXS, And RPL Surge More Than 10%
Though the majority of altcoins in the market have since been in an
upward trend after the dip yesterday, the latest rally from LDO,
FXS, and RPL seems to be attributed to the latest date set for the
Shanghai launch. Related Reading: LDO Leads Top
Cryptocurrencies, Rises 20% In The Last Day In the past 24 hours,
these tokens have surged even more than Ethereum itself which has
only moved 4.1% over the same period. Lido’s LDO has seen the
second-largest gain among these listed native tokens for staking
projects. Over the past 24 hours, LDO has made a significant move
up by 12.8%. The token has risen from a low of $2.05 seen on March
28 to trade as high as $2.49 as of today. LDO’s daily trading
volume has also surged over the same period, indicating increasing
buying pressure as the Shanghai launch draws near. Emerging as the
highest gainer among the listed tokens, Frax’s FXS has surged by
more than 18% in the last 24 hours. The token has moved from a low
of $7.42 seen yesterday to trade just below $9 at the time of
writing. Despite the token low recognition compared to LDO among
the crypto community, FXS has an all-time high value of $42.80.
However, just like several altcoins in the market, the token is
currently down 79% from its peak. Rocket Pool’s RPL has the lowest
gain among the listed tokens. At the time of writing, RPL is up
around 10% and the token has spiked from a low of $40 to $45.53. As
opposed to the majority of crypto in the market, RPL is only down
29% from its high of $59.46, seen in November 2021. A Run Down On
Ethereum Native Tokens Staking projects such as Lido, Frax Shares,
and Rocket Pool entered the spotlight when Ethereum transitioned
into a proof-of-stake (PoS) mechanism. Basically, the transition
caused a drastic change in the way in which Ethereum is being
mined. To be a miner or validator on the Ethereum network, one will
have to deposit or stake a total of or more than 32 ETH, while that
figure happens to be a large amount when converted to real word
currency such as the united states dollar, not everyone could
afford that. Related Reading: Ethereum Staking Provider Lido
Finance (LDO) Climbs 10%, Is It Too Late To Get In? As a result,
many turned to liquid staking projects like Lido Finance which
allows for the contribution to be a staking validator on the
Ethereum network without the need to deposit the required 32 ETH.
Platforms such as Lido Finance, Frax Shares, and Rocket Pool give
users the opportunity to stake lesser than 32 ETH and earn a yield
on it. In exchange for the staked ETH, the user receives a
staked version of ETH such as Lido’s stETH and Frax’s frxETH, which
is like a receipt of their staked ETH. Featured image from
Unsplash, Chart from TradingView
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