Good morning. Here’s what’s happening:

Prices: Ether soared sharply after the Ethereum Shanghai upgrade. Bitcoin was also rising towards $31K.

Insights The mass unlocked of staked Ethereum that some crypto-market observers predicted did occur. Ether’s value has risen. The prospects for Ethereum are positive.


Bitcoin and Ether both rise past $31K

Crypto market analysts expecting post-Shapella pressure to send ether (ETH)’s price plummeting suffered through a day full of disappointment.

Ether was recently trading over $2,100. This is up more than 11% in the past 24 hours. Ether recently traded over $2100, an increase of more than 11% in the last 24 hours. investors chose to earn staking rewards and gain additional liquidity over taking immediate profits.

Ilya Volkov wrote in an email to CoinDesk that many traders were waiting for the end upgrade before they started accumulating long positions. “Therefore neutral news about U.S. Inflation plus deferred Demand pushed ETH up.”

Volkov said that even if the selling pressure in the following weeks increases, it is unlikely that the price of ether will deviate from the upswing started with other major cryptos earlier this year. He wrote that “ETH price remains in the same upwards trend channel since the beginning of the calendar year.”

Shapella is also known as the Ethereum Shanghai Upgrade. It’s the last step in the transition of the Ethereum network from proof-of work (PoW), to a more energy efficient proof-of stake (PoS). Crypto market analysts were divided on the impact of this change, with some expecting a price spike while others expected little.

Bitcoin has also maintained a more moderate pace of growth, with the price recently rising to $31,000, an increase of more than 2.5% compared to Monday. The other major cryptos also spent Thursday in the black. ARB, the token for layer 2 companion blockchain Arbitrum soared about 33%, and APT was the native crypto on layer 1 blockchain Aptos. The CoinDesk Index is a measure for the performance of the crypto markets. It was up by nearly 5% recently.

The Nasdaq, which is a tech-oriented index, and the S&P 500 with a high tech component both closed up, rising by 2% and 1,3% respectively. The recent rise of a number of crypto stocks continues with Marathon Digital and Hut 8 Mining both rising by about 15%. Investors who are afraid of recession have also shown their interest in other assets which hold their value. Gold has risen above $2,050 and is now near the all-time record high set by 2020, $2,069

Will ether rise further? CoinDesk’s Glenn Williams said that ETH deposits could provide some clues about the future of ether. Williams wrote that since January 2021, “the trajectory for ether deposited in ETH staking contract has steadily risen. This direction suggests the asset is gaining favor, not losing it.” Over the next few weeks and months this metric is likely to flatten, as investors begin the process to un-stake ETH. Shapella’s completion is a sign of reduced risk, increased liquidity and an increase in asset value for those who wish to stake.

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Why Didn’t you Sell the News of Ethereum’s Shanghai Upgrade?

According to the statistics, many ether (ETH), stakers are holding onto their coins. Despite predictions from several analysts that the recently completed Ethereum Shanghai hard-fork (alongside the separate Capella update, collectively known as “Shapella”) was a “sell the news” moment, ETH actually climbed up to its eight-month-highs. After gaining about 3% in Asian trading hours, the second-largest cryptocurrency by market capitalization traded above $2,000 for first time since last year.

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It is unclear what this means for Ethereum’s viability and the future of the price of ETH. Shanghai, the hard fork that is backward compatible, has enabled Ethereum holders to withdraw the tokens they pledged for the Ethereum deposit contract, which validates the proof-of stake network. They can also withdraw the tokens they received as a result. Many stakers pledged 32 ETH initially to become validators by 2020 and haven’t had access to those coins since.

The 18 million ETH plus (worth $33 billion) currently held has not resulted in a flood of sales. The loyal CoinDesk readership knew that the “selling” pressure on ETH was exaggerated . Amphibian Capital CEO James Hodges noted on Monday that the majority of ETH validaters were in the negative leading up to this event. It was therefore unlikely that they would cash out at a profit. The fortunes of crypto holders may be changing now that the prices are on the rise, led by bitcoin which has broken through to $30,000 this week.

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CoinDesk TV

If you haven’t seen it yet, here is the latest episode of “First Mover” on CoinDesk TV.

The Shanghai upgrade of Ethereum is complete, and the network now processes staking withdrawals. Justin Florentine, a senior protocol developer at Ethereum client Besu will be joining “First Mover” for a discussion on Shapella. Some regulators are also concerned about the metaverse actions of internet giants. Sebastien Borget joined us to discuss. Plus, we’ll be discussing the latest developments in the FTX case as well as the South Korean crypto scene.

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