Is Ethereum Interesting After the Shanghai Update?
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Until now, the dominance of the crypto market is still held by Bitcoin (BTC) since its initial appearance about 14 years ago during the ongoing world economic crisis.
Even so, the second major crypto asset, namely Ethereum, also did not subside in the flames of competition, with its desperate efforts to attract the interest of investors from all over the world.
Ethereum's own struggles to attract investment flows may come as a surprise to some. This, given a number of factors such as strong network fundamentals, as well as the upcoming Shanghai hard fork upgrade.
In terms of network fundamentals, a recent Bernstein report states that the Ethereum network's on-chain activity has been increasing recently. This increase moves to NFT assets after the release of the mini-games worked on by Yuga Labs.
Bitcoin and Ethereum are known to have gained around 40% since the beginning of the year, despite many factors such as the Fed's easing of interest rate policy in 2023, excessive post-FTX crash pessimism, as well as increased on-chain and technical signals indicating that the market is bearish. it's probably over.
According to a report released by Bernstein, the daily fees earned by the Ethereum network, have more than doubled. From the beginning of the year it was only around US$ 2 million to around US$ 4 to US$ 6 million per day.
For your information, Ethereum's average daily fee over the past seven days has been around US$4.88 million, up from around US$2.9 million this time last month.
The higher fees, continued Bernstein, are a sign that usage of the Ethereum blockchain is higher. This can also ensure that the Ethereum inflation rate remains negative in the near term.
Regarding the Shanghai upgrade, in the near future it is alleged that it will become the next big catalyst for Ethereum. This fact, given that the stacked ETH can eventually be withdrawn. Nevertheless, Bernstein cautioned that investors should remain cautious, given fears that non-stack Ether could flood the market and add to selling pressure.
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