According to recent reports, cryptocurrency exchanges saw a surge of 179,500 ether worth $375 million in the four days after the launch of the Ethereum Shanghai Upgrade. The update, also known as “Shanghai,” enabled the first-time withdrawal of funds from the Ethereum Proof-of-Stake blockchain, which has approximately $18 million worth of ETH locked in stake contracts.
Ethereum Shanghai Upgrade Triggers Massive ETH Surge on Exchanges
Before the Ethereum Shanghai update, some cryptocurrency watchers predicted that this event would flood the market with millions of ETH unlocked and crash the price of the second largest cryptocurrency. However, there were others who predicted little impact or even higher prices. Luckily, the launch went smoothly. ETH has even outperformed Bitcoin (BTC) in this 24-hour period.
CryptoQuant data shows traders deposited 1,101,079 ETH on exchanges and removed only 921,579 tokens between April 13-16. It was the largest four-day net inflow in a month. Although investors moving tokens on exchanges usually indicate that they are preparing to sell, there are some who have sold ETH during the price rally post-Shanghai. However, since the update, the ETH-USD trading pair on crypto exchange Coinbase has seen $28 million more sell orders than buy orders, according to cryptocurrency market research platform Kaiko. This suggests that some traders sold ETH during the price rally post-Shanghai.
It’s worth noting that while this event caused ETH to surge on exchanges, it doesn’t necessarily mean that the price of the cryptocurrency will go down. Perhaps traders simply transfer their ETH to exchanges for other reasons, such as taking advantage of trading opportunities or preparing for future market movements. Overall, the impact of the Shanghai update on the crypto market remains to be seen.
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