The Ethereum blockchain has reached a milestone: it had more than 500,000 validations in just a few days. The increase could be due to the upcoming Shanghai update. But how much could the ETH coin price benefit from these developments?
Testnet planned for next month
According to statistics on Beaconscan, the number of collectors in the ETH network rose to over 500,000 last week. Compared to the previous year, this number has increased by half.
In line with the expectation of the Shanghai update, which is to be published in March, a pleasant development can be observed. This should already be running through testnet in the next month.
After the planned update, Ethereum users should be able to withdraw their pledged rewards. As a successor, the 4844 upgrade is due to follow in the summer, which is intended to significantly reduce transaction costs.
If you can sell some of your JPEG stack right now for 32 ETH and you don’t currently have enough ETH to run a validator, I would recommend taking some profits. Trust me, you’ll want at least one pic.twitter.com/q2J6QQ5e6A
— Sayuki0x (@Sayuki0x) January 23, 2023
What is a validator?
Individuals who wish to become a coin collector must have at least 32 ETH and manage a validated client on the Beacon Chain. The task of these users is to verify blocks, among other things. With a Proof of Stake method, such as Ethereum uses, the task is to check the transactions and classify them as valid. It will only be completed after this confirmation.
The random principle determines which transactions are assigned to the validators. People get rewarded for their work in the form of ETH tokens. So blockchain and the payment transactions running on it depend on collectors. Therefore, the current development in the Ethereum network could have a positive impact on the price in the future. Because the more people work there, the faster the financial statements are processed.
How will the ETH price react to the rise?
The number of collectors increased slowly after the merger was completed in September 2022. On January 14, it reached the milestone of 500,000. On this day, the ETH course rose pleasantly. It made a significant jump from $1,310 to $1,440. He was able to maintain this level to this day and continue to expand the courses.
It is currently above USD 1,607. The price has fallen slightly below one percentage point in the last 24 hours. The crypto currency seems to be taking a breather after increasing by 30% in the last seven days. The market capitalization is currently around USD 200 billion.
So, in the last few days, it has been noticed that investors and traders have reacted to this news. The course answered clearly. But can he take advantage of the positive developments in the long term now?
The price of ETH could rise in the long termEven before the important milestone was reached, a positive movement could be observed in the course of Ethereum. The price seemed to stabilize again, similar to the price of bitcoin after last year.
With the upswing that has now emerged, the ETH price could also rise in a positive direction in the long term. Because an increase in collectors is a sign that people and companies are joining the Ethereum network. These people reinforce important characteristics such as security, integrity and stability. Of course, the key factor here is that this number continues to rise or remains constant.
Another important factor will be the upcoming Shanghai update. According to the developer, payments should be possible from March. This function will play a big role for many ETH users. Therefore, Shanghai is eagerly waiting from the public.
If the developers’ plans hold up and users are happy with the update, trust in the network could return. In any case, the course would also benefit from this.
The stability and further development of your own network is probably the most decisive factor in the question of whether the price of ETH will remain bullish. However, the current state crypto prices should be considered.
Macroeconomic factors are still very unstable and do not provide the best conditions for a significant increase. But there were small rays of hope at the turn of the year. Inflation rates and the prime interest rate appear to be stabilizing.
If these developments spread to the stock and crypto market, the price of Ethereum could also benefit.
If this is the case and the upgrade works as planned, the price could drop again in the short term. This situation would occur if many traders withdraw their promised rewards from the network at the same time.
However, from a long-term perspective, the price of Ethereum has a good forecast of increasing value in the future.
Many crypto analysts agree that the price will rise soon. Changelly.com expects the coin to grow 350% over the next four years. As of today, that would be worth $6,300.
At Bitcoin-2go, a forecast was calculated based on past data and current performance. Here, too, one can see a positive development for Ethereum. Experts estimate that a value of 2,000 USD is possible this year.
Merge Ethereum: How Green Is Blockchain Now?
With the change to the Proof of Promise process, the developers wanted to take an important step towards sustainability and environmental awareness. An analysis has now been published showing how much energy the ETH blockchain has now consumed.
From the published data, it can be read that Ethereum consumes only 0.0026 TWh per year. Power consumption was reduced by 99.988%. CO emission2 mixing was significantly reduced. For comparison: YouTube consumes about 244 TWh per year.
The developers are very happy about these positive developments and describe in the report that the effects of the new consensus mechanism are enormous:
“In real terms, this is equivalent to reducing emissions from the height of the Eiffel Tower to a small plastic toy figure.”
In terms of the important debates that take place, not only among private individuals but also in politics, Ethereum has developed excellently here. In doing so, he became a pioneer of environmentally friendly crypto networks.