• The Ethereum Zhejiang testnet was launched on 1 February and is open to the public, allowing anyone to access ETH and launch their own validators on the network.
• The Shanghai upgrade is set to launch on 7 February, with improvements such as proto-dank sharding via EIP 4844.
• Despite challenges, the anticipation for the Shanghai hardfork has resulted in an increased interest from validators and a 5-month high of Ethereum holders in profit.
Ethereum’s Zhejiang Testnet Launch
The Ethereum Zhejiang testnet was launched on 1 February 2021, marking an important milestone in the journey towards the Shanghai upgrade. It is open to the public, allowing anyone to access test ETH and launch their own validators on the network.
Shanghai Upgrade Activation
The activation of the Shanghai upgrade will take place on 7 February 2021, assuming all issues are resolved. This upgrade will introduce new features such as proto-dank sharding via EIP 4844 which will improve rollup compatibility for Ethereum and lower overall fees.
Increased Interest From Validators
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 revenue generated by these validators has risen by 76%. This indicates that more people are interested in staking their ETH for rewards and generating income through it.
Impact On Price
Despite this positive sentiment surrounding Ethereum, there may be a short-term impact on its price due to large numbers of users making withdrawals from their staked ETH after activating Shanghai upgrades. However, it is too early to tell if this will happen or not at this point in time. At press time, ETH was trading at $1,666.75 per coin.
Conclusion
Overall, while there may be some short-term fluctuations in price after launching Shanghai upgrades, long-term holders continue to remain optimistic about Ethereum’s future prospects due to its increasing popularity among validators which could result in further growth of its price over time