Ethereum Shanghai Update Gives Native Tokens A Boost In Price
After several postponements, a date has finally been set for the Ethereum Shanghai upgrade, which will allow for the withdrawal of staked ETH on several platforms. According to the Ethereum Foundation’s latest note, the Shanghai upgrade is set to be activated by 6:30 pm UTC on April 12, 2023.
This latest update on the Shanghai upgrade has given native tokens of staking projects such as Lido DAO (LDO), Frax Shares (FXS), and Rocket Pool (RPL) a bullish momentum. Over the past 24 hours, these tokens have surged by over 10%, respectively.
LDO, FXS, And RPL Surge More Than 10%
Though the majority of altcoins in the market have since been in an upward trend after the dip yesterday, the latest rally from LDO, FXS, and RPL seems to be attributed to the latest date set for the Shanghai launch.
Related Reading: LDO Leads Top Cryptocurrencies, Rises 20% In The Last Day
In the past 24 hours, these tokens have surged even more than Ethereum itself which has only moved 4.1% over the same period.
Lido’s LDO has seen the second-largest gain among these listed native tokens for staking projects. Over the past 24 hours, LDO has made a significant move up by 12.8%. The token has risen from a low of $2.05 seen on March 28 to trade as high as $2.49 as of today.
LDO’s daily trading volume has also surged over the same period, indicating increasing buying pressure as the Shanghai launch draws near. Emerging as the highest gainer among the listed tokens, Frax’s FXS has surged by more than 18% in the last 24 hours.
The token has moved from a low of $7.42 seen yesterday to trade just below $9 at the time of writing. Despite the token low recognition compared to LDO among the crypto community, FXS has an all-time high value of $42.80. However, just like several altcoins in the market, the token is currently down 79% from its peak.
Rocket Pool’s RPL has the lowest gain among the listed tokens. At the time of writing, RPL is up around 10% and the token has spiked from a low of $40 to $45.53. As opposed to the majority of crypto in the market, RPL is only down 29% from its high of $59.46, seen in November 2021.
A Run Down On Ethereum Native Tokens
Staking projects such as Lido, Frax Shares, and Rocket Pool entered the spotlight when Ethereum transitioned into a proof-of-stake (PoS) mechanism. Basically, the transition caused a drastic change in the way in which Ethereum is being mined.
To be a miner or validator on the Ethereum network, one will have to deposit or stake a total of or more than 32 ETH, while that figure happens to be a large amount when converted to real word currency such as the united states dollar, not everyone could afford that.
Related Reading: Ethereum Staking Provider Lido Finance (LDO) Climbs 10%, Is It Too Late To Get In?
As a result, many turned to liquid staking projects like Lido Finance which allows for the contribution to be a staking validator on the Ethereum network without the need to deposit the required 32 ETH. Platforms such as Lido Finance, Frax Shares, and Rocket Pool give users the opportunity to stake lesser than 32 ETH and earn a yield on it.
In exchange for the staked ETH, the user receives a staked version of ETH such as Lido’s stETH and Frax’s frxETH, which is like a receipt of their staked ETH.
Featured image from Unsplash, Chart from TradingView
Source: NewsBTC.com
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