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Shanghai Upgrade Effect
The Shanghai upgrade has been long talked about, being the next significant step towards a new Ethereum model that runs on proof-of-stake.
This will be the biggest upgrade since ‘The Merge’ when ETH gained the ability to become deflationary, which will likely have a huge effect on the price action of ETH in the future.
One issue that people are talking about in the meantime is the immediate effect of the Shanghai upgrade, which will allow the ETH that has been staked to be withdrawn. This 16 million ETH, a current value of over $25 billion, being flushed onto the market could have dire consequences for those holding the coin, with the potential to send price crashing downwards as unstakers rush to retrieve liquid capital by selling ETH on the open market.
What Does Shanghai Upgrade Do?
The main feature of this upgrade, EIP-4895 (Ethereum Improvement Proposal), is to allow validators, some of whom have been staked on the Ethereum PoS ‘Beacon chain’ since 2020, to withdraw their staked ETH and rewards. A debate has been sparked on whether this new era of Ethereum staking will create more demand for staking or whether these validators will withdraw their ETH and sell for what is likely to be currently a 400% or more profit. With 15 million ETH staked and 1 million ETH in rewards, the potential for hard sell pressure exists.
ETH Price Prediction
Most analysts predict that the idea of being closer to the end of a bear market than the start, in addition to Ethereum essentially becoming a deflationary system, will draw institutional investors to staking ETH and halt those that may have considered from following through.
Next Bull Market Percentage Leader
The potential for the new ETH model to push Ethereum to the top of the cryptocurrency table by market cap is strong, but it will unlikely be the best performer, in terms of percentage returns, of the next bull market.
That crown will likely belong to an AI product, with machine-learning crypto and stocks hitting the top of most people’s buy lists.
Avorak AI is one such project that is on its way to dominating the retail sector early on. Workflow improvement applications, such as image and text generation tools, an automated chatbot that is able to relay information instantly, and a full trading bot that enhances its own set of indicators over time by learning with real trades, will be heavily targeted towards retail users. Once these products are underway, the roadmap shows that this artificial intelligence product will be expanded out to include applications that focus entirely on the commercial sector, usually where the majority of revenue is produced.
With their ICO already in full swing, we may even see some unstaked ETH funneled straight into this incredible prospect.
Want to learn more about Avorak AI?
Website: https://avorak.ai
Whitepaper: https://avorak-labs-and-technology.gitbook.io/avorak-a.i-technical-whitepaper/
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