Ethereum has gained 8% in the past 24 hours as it edges closer to the $2,000 (£1,602) mark ahead of the blockchain’s Shanghai upgrade.
Ethereum (ETH-USD), the world’s second largest cryptocurrency by market capitalisation, reached a high of $1,920 in the last 24 hours, a price level not seen since August 2022.
The upward trajectory comes despite uncertain macroeconomic conditions caused by successive US Federal Reserve rate hikes, and turmoil in the global banking sector following the collapse of Silicon Valley Bank (SIVB).
What is Ethereum’s Shanghai Upgrade?
The upcoming Shanghai upgrade will mark Ethereum’s complete transition to a proof-of-stake network, further solidifying its position within the cryptocurrency landscape as the most widely adopted layer one blockchain.
Scheduled for April 12, the Shanghai upgrade, commonly known as ‘Shapella’, will signify the blockchain’s complete shift from a proof of work (PoW) to a proof of stake (PoS) network. Proof of stake blockchains use over 99% less energy to validate than those that operate using proof of stake.
This transition follows the previous ‘merge’ upgrade in September, and for the first time, it will allow users to withdraw their staked ether, Ethereum’s native cryptocurrency.
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By moving to a proof of stake network, Ethereum will reduce its energy consumption by 99.9%, and enable users to generate passive income through staking their cryptocurrency.
Staking involves earning financial rewards for contributing to the blockchain’s network and supporting its functionality.
The Shanghai Upgrade will allow those ether ‘stakers’ who lock their funds to make the network function, to withdraw their staked ETH.
This is a relief to many stakers who experienced anxiety throughout the last quarter of 2022 when the price of the cryptocurrency was sent into a downward spiral after the collapse of the FTX exchange.
Today’s crypto prices
The global cryptocurrency market cap today stands at $1.25tn (£860bn), a gain of 2.5% in the last 24 hours, according to data from Coingecko.
Ethereum stands at $1,911 as of the time of writing, a gain of 8% in the past week.
Bitcoin (BTC-USD) is now priced at $28,531, up 5% in the past week.
Bitcoin has gained 70% since beginning of the year, and according to data from Coinglass, in the past 24 hours most traders of the digital asset hold long positions, suggesting market sentiment is currently in favour of more upward momentum.
Coinglass data showed that in the past 24 hours, across the entire cryptocurrency market, 30,188 traders were liquidated, with the total liquidations comes in at $97.95m. The majority of these liquidations were of short positions as the whole market gained in value.
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However, one of the most prominent losers in the past 24 hours was dogecoin (DOGE-USD).
The price of dogecoin shot up yesterday after Twitter changed the logo on the social media platform’s website from the iconic blue bird to an image of a Shiba Inu dog associated with the dogecoin cryptocurrency.
The price of dogecoin, which is typically volatile, soared 35% in one day, however, it fell as day traders dumped the memecoin to take gains.
Dogecoin now sits at $0.096 per token, a fall of 2.2% in the past 24 hours, according to data from Coingecko.
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