Connect with us
Active Currencies 14317
Market Cap $2,554,546,154,450.20
Bitcoin Share 51.68%
24h Market Cap Change $0.41

Ethereum: Understanding the Zhejiang angle in the Shanghai upgrade

2min Read
Ethereum: Understanding the Zhejiang angle in the Shanghai upgrade

Share this article

  • Public testnet launched before Shanghai upgrade activation.
  • There was an increased interest from validators in the Ethereum ecosystem.

The launch of Ethereum‘s Zhejiang testnet on 1 February marked an important milestone in the journey towards the Shanghai upgrade.

Zhejiang is different from previous Ethereum testnets as it is open to the public, allowing anyone to access test ETH and launch their own validators on the network.

The activation of the Shanghai upgrade on Zhejiang is the final major testing stage before the main network activation.

Read Ethereum’s Price Prediction 2023-2024

Up to date

The Shanghai upgrade is set to launch on the 7 February, but only if Ethereum manages to resolve the issues that arose. One of the Ethereum developers reported that the network has been experiencing problems with depositing staked ETH.

Despite these challenges, the upgrade remains on track and the focus will be on enabling withdrawals. However, other improvements are also taking place on the network. For instance, the EIP 4844 upgrade will introduce proto-dank sharding. This will be enabled by using data types known as “blobs.”

The EIP 4844 will improve rollup compatibility for Ethereum and also help lower overall fees.

The anticipation for the Shanghai hardfork has led to an increased interest from validators on the Ethereum network.

The number of validators has grown by 3.07% over the past month, and the revenue generated by these Ethereum validators has increased by 76% over the last 30 days.

Well, the prospect of generating revenue has attracted many validators to the network.

Source: Staking Rewards

All smiles from HODLers

However, the Shanghai upgrades may result in a large number of users making withdrawals from their staked Ethereum, which could have a short-term impact on the price.

How much are 1,10,100 ETH worth today?

Despite this, the overall sentiment among Ethereum holders remains positive. Data from glassnode showed that the percentage of Ethereum holders in profit increased materially and reached a 5-month high, at press time.

Source: glassnode

Well, the long-term impact of the Shanghai upgrades on ETH holders remains to be seen. While the journey towards improvement continues, the question of whether or not the Shanghai upgrade will test the resolve of ETH holders remains unanswered.

However, the price of Ethereum continues to gain from the positive attention directed toward the hardfork.

At press time, ETH was trading at $1,666.75, and its price appreciated by 0.97% over the last 24 hours.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.