• Ethereum’s Shanghai upgrade is slated for March and will release 16.1 million ETH, worth $26 billion, back into circulation
• Ethereum transaction volume has decreased from a peak of 1.5 million per day to around one million currently
• Total Value Locked (TVL) in Ethereum is down 74% from its peak of $109 billion in November 2021
Ethereum’s Upcoming Shanghai Upgrade
The much-awaited Shanghai upgrade is slated for March. This upgrade will unlock 16.1 million ETH, which is equivalent to 15% of the entire supply, and worth close to $26 billion at time of writing.
Transaction Volume and TVL Decline
Transaction volume for Ethereum has decreased from a peak of 1.5 million transactions per day to around one million currently. Total Value Locked (TVL) in Ethereum is also down to $28 billion, a 74% fall from its peak of $109 billion in November 2021.
Capital Flight From The Space
Capital has been fleeing the crypto space due to higher interest rates from the Fed offering investors an alternate source of yield, while DeFi rates have collapsed. This capital flight has been demonstrated by the drop in TVL across all cryptocurrencies over the last year.
Ethereum Market Share Growing In A Smaller Pie
Despite this decline in activity, Ethereum’s market share has grown compared with its rivals who have fallen significantly more since their peaks last year. Although it may be taking up a bigger piece of a smaller market size pie, it still shows that many investors are holding onto their Ether despite the current bear market conditions.
What To Expect After The Shanghai Upgrade?
After the long wait for investors finally comes to an end with the release of 16.4 milion ETH after the Shanghai upgrade next month, we can expect increased activity and possibly higher prices as investor sentiment improves following this eventful date on the calendar for Ethereum holders everywhere!
