The second-largest cryptocurrency in the world, Ethereum (ETH), outperformed Bitcoin on Thursday with a 4% gain, pushing it beyond US$2,000 for the first time in eight months. It comes after yesterday’s significant Shanghai upgrade, which opened up over US$30 billion in staked ETH tokens for redemption.
The market’s concerns that stalkers, some of whom have waited three years to retrieve their coins, we’re going to extract gains or concede their losses are starkly contrasted with ether’s steady surge. The ETH/USDT pair reached a high of US$2,008 before edging down below 2k, but it is still 7.5% higher than it was at the beginning of the week.
In comparison, Bitcoin gained 1.6% today and 7.3% over the course of the week. As a consequence, short-ETH futures have been liquidated for a total of US$28 million.
The increase in price might be interpreted as either a validation of the usefulness of ETH, which is used to pay transaction fees on the biggest smart contract ecosystem in the world, or as a hint that holders are holding off on selling until their currencies are lucrative.
Bitcoin’s proof-of-work (PoW) paradigm, which was invented by Bitcoin’s unknown founders, is different from Ethereum’s proof-of-stake (PoS) protocol. Under PoW, powerful computers mine for bitcoin by resolving difficult equations, receiving bitcoins as a reward.
PoS is up to 99% more energy efficient than PoW and creates a blockchain network that is far quicker. PoS is frequently attacked for being overly centralized, which is in opposition to the decentralized principle that guides Bitcoin technology.
ETH owners may now stake their supply to the network to guarantee transaction security under the proof-of-stake (PoS) consensus method, receiving yield in return, as the Shanghai upgrade is complete. Staking requires a minimum of 32 ETH (about $64,000 USD), however, protocols like Lido DAO (LDO) allow anybody to stake for free.
Over US$12 billion in total volume locked (TVL), or roughly a third of all staked ether tokens, is now held by Lido DAO. Currently, approximately 562,000 unique stakes are participating in the stake of almost 15% of all ETH tokens in existence.
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