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Ethereum: FUD rises as approaching Shanghai Upgrade exposes…

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Ethereum: FUD rises as approaching Shanghai Upgrade exposes...

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  • Ethereum addresses’ private keys could be vulnerable to being leaked after the Shanghai Upgrade.
  • Though interest among validators in ETH remained high, gas usage declined.

The crypto community is eagerly anticipating the upcoming Shanghai Upgrade, which has been generating significant interest from the Ethereum [ETH] community. Nevertheless, the growing scrutiny may potentially have adverse effects on ETH’s future.

Read Ethereum’s [ETH] Price Prediction 2023-2024

Not all publicity is good?

On 9 April, Shenyu, the founder of Cobo, a company that offers digital asset custody services, stated that private keys of Ethereum addresses that have staked their ETH might be vulnerable to exposure.

To address this issue, he recommended that centralized staking providers should examine their private key storage method, assess the status of authorized personnel, and establish contingency plans.

Shenyu has advised caution in light of a comparable occurrence during the launch of Arbitrum’s [ARB] AirDrop, in which numerous private keys were exposed.

Marching forward

Even though the concerns around the upgrade have been rising, validators on the Ethereum network continued to support it. Staking Rewards’ data showcased that the number of validators on the network grew by 3.08% in the last 30 days.

At press time, there were 563,803 validators on the Ethereum network, who had accumulated $2.34 billion in revenue.

Source: Staking Rewards

Traders have also started to look favorably upon ETH. This could be due to a decrease in Ethereum options’ implied volatility (IV). Based on Greeks Live, the IV for Ethereum has dropped by 8% in the past two weeks. A decline in IV for Ethereum indicates that the market perceives there to be less risk and uncertainty in the price of Ethereum.

One plausible explanation for this reduction in IV could be the boost in market liquidity brought by Easter. However, it is worth mentioning that Ethereum’s IV rarely reaches the same low levels as that of Bitcoin [BTC].

Source: Greeks Live

Realistic or not, here’s ETH’s market cap in BTC’s terms

Even though ETH was witnessing massive interest at press time, the same could not be said about the network itself. Activity on the network fell significantly, which was indicated by the declining gas usage on Ethereum.

The number of NFT trades on the network also dropped during this period, which may have contributed to the falling gas usage and lower activity.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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