Ethereum Selling Pressure Post-Shanghai Upgrade Was ‘Non-Event,’ Says Nansen
Ethereum Selling Pressure
The number of staked ether has climbed to 19.55 million, a new all-time high, as ETH staking deposits surpassed withdrawals.
According to blockchain data analytics firm Nansen, the recent upgrade to the Ethereum blockchain, known as the Shanghai upgrade, did not result in significant selling pressure on the cryptocurrency Ether.
The Shanghai upgrade was implemented on April 15th and included changes to the Ethereum Virtual Machine (EVM), which is the virtual machine that runs smart contracts on the blockchain. The upgrade was designed to optimize the EVM’s gas costs and improve the efficiency of smart contract execution on the network.
After the upgrade was implemented, some investors and traders speculated that it would lead to a sell-off in Ether, as the changes could make it easier for developers to create and execute smart contracts, potentially leading to increased supply and lower demand for Ether.
However, according to Nansen’s analysis of blockchain data, there was no significant increase in selling pressure on Ether after the upgrade. In fact, the data suggests that there was actually a decrease in selling pressure, as the amount of Ether held by long-term holders increased.
Nansen’s analysis is based on data from the Ethereum blockchain, which allows for transparency and real-time tracking of transactions and balances. The firm’s platform tracks Ethereum wallets and analyzes transaction data to provide insights into market trends and investor behavior.
Nansen’s data shows that after the Shanghai upgrade, the number of Ether transactions on the blockchain decreased, indicating that there was less trading activity in the market. This suggests that investors and traders were not actively selling Ether in response to the upgrade.
Additionally, the data shows that the amount of Ether held by long-term holders, who are defined as those who have held their Ether for at least six months, increased after the upgrade. This suggests that long-term investors were not deterred by the upgrade and continued to hold their Ether, potentially indicating confidence in the future of the Ethereum network.
Overall, Nansen’s analysis suggests that the Shanghai upgrade was a non-event in terms of its impact on Ether prices and investor behavior. While some investors and traders may have been concerned about the potential effects of the upgrade, the data suggests that these concerns did not materialize in a significant way.
This is positive news for the Ethereum network, as it indicates that investors and traders remain confident in its future potential. The network has continued to see growth in its decentralized finance (DeFi) sector, which allows for the creation of decentralized financial applications on the blockchain.
As the Ethereum network continues to evolve and improve, it is likely that it will continue to attract new investors and users. The Shanghai upgrade was an important step in this evolution, and Nansen’s analysis suggests that it was successful in achieving its goals without negatively impacting the market.
