Ether added more than 10% in the past 24 hours, trading at an 11-month high above $2,120 during Asian trading hours. Thursday’s Shapella update ushers in a major development for the Ethereum network, allowing users to stake and remove tokens from the network at will — improving the overall visibility of the network.
Lido’s LTO and Rocket Pool’s RPL surged up to 14%, with liquidity staking protocols’ governance tokens seeing massive gains. Both protocols lock up billions of dollars in Ether staking to yield users who can spend as much Ether as they want to earn rewards without having to put up the 32 Ether needed to run a validator node, keeping the liquidity of the coins locked through derivative tokens.
Lido’s partner Ether Tokens (STETH) climbed into the top ten cryptocurrencies with a market cap of $12 billion, the amount of Ether locked in the protocol.
Valerie Tetu, head of strategy at Lido Finance, told CoinDesk that the Shabella upgrade will lead to improved trust among users.
“The refund enabled by the Shanghai update marks a significant milestone in the development of the Ethereum blockchain,” Tetu said in an email. “Refunds will allow stakeholders to participate in securing the network with greater confidence, while increasing the capital efficiency of the tokens they decide to allocate.”
“For the staking ecosystem, the ability for users to withdraw their tokens will support healthy competition across platforms and providers, as well as help a wide range of staking offerings and structures thrive,” he added.
Meanwhile, dogecoin (DOGE) gained for a second day. It got a lot of buzz when trading service eToro said it would offer crypto trading directly from Twitter, the social media giant owned by Elon Musk, leading to speculation that Doge was eventually accepted for payments on the platform.
Musk is a vocal DoCoin supporter and has expressed support for the development of the DoCoin network several times in the past.
Some market watchers expect the rally to continue for the next few weeks.
“Many traders are waiting to start accumulating long positions until the upgrade is over, so neutral news about US inflation and deferred demand has boosted ETH prices today,” Ilya Volkov, co-founder of crypto services platform uHodler, told CoinDesk. Email.
“ETH remains in the same uptrend channel since the beginning of the year. If the macro situation does not deteriorate, the current trend is unlikely to change in the near future despite the fact that selling pressure will increase in the coming weeks due to the opening of liquidity,” added Volkov.
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