First of all, the "Shanghai upgrade" of Ethereum has no substantive relationship with Shanghai, it just adopts the name "Shanghai". In simple terms, "Shanghai upgrade" can be understood as a version name of Ethereum technology upgrade.
In addition, we all know that Ethereum, as a public chain, has been upgraded from version 1.0 to version 2.0 in 2022, and this Shanghai upgrade is an important upgrade to version 2.0.
So why is this upgrade getting attention and called it a major upgrade? We can find the answer from the changes before and after the upgrade.
Before the Shanghai upgrade, Ethereum had completed the generation method from mining (PoW) to staking (PoS).
It helps to improve the experience of using the Ethereum network in applications such as DeFi and NFT, and improves the usability and attractiveness of the Ethereum ecosystem.
Before upgrade:
Due to the pledge (PoS), before the upgrade, a large amount of ETH is pledged on the Ethereum ecological chain, and there is no income to be withdrawn.
After upgrade:
The ETH pledged on Ethereum and the income can be withdrawn with probability.
All in all, we can understand that listed companies lock up some stocks for up to two years. When the company completes technological innovation, these stocks will be released in the market together with dividends.
This Shanghai upgrade will affect all the economic ecology of the entire Ethereum chain.
The rise of NFT can be traced back to 2021. Through the frenzy of creating NFT in 2021 and early 2022, the Ethereum ecological chain has gained a lot of good user experience and high Gas fees. This upgrade will increase the transaction speed of ETH and reduce transaction costs, and will surely enhance the "gold-absorbing" ability of the NFT ecosystem again. It is an opportunity to earn returns for investing in NFT and Web3.0 projects.
When the use cost of ETH is reduced and its own technical innovation appears, the endogenous value of ETH will be continuously improved. This is why, since the beginning of the year, the price of ETH has risen from around $1,200 to around $1,800, an increase of about 50%.
In each epoch, approximately every 6.4 minutes, only 6 validators can withdraw the pledged ETH. A maximum of 1,350 validators withdraw from staking every day. Based on this estimate, after the upgrade in Shanghai, Ethereum only allows a maximum of 43,200 ETH to be withdrawn every day.
The major ETH2.0 protocols provide a minimum APY (annualized rate of return) of nearly 4.8% pledged, and there is still a lot of room for upside. If a pledger withdraws, it is likely that a considerable number of users will flood into the pledge.
For MEXCers who already hold ETH, because ETH has appreciation expectations, it is a good choice to continue to hold and use MEXC Savings to obtain more ETH returns.
At the same time, by staking ETH to obtain BETH+MX double income, you can enjoy the super high appreciation expectation of MX spot:
In MEXC, you can get ETH and through this "Shanghai Upgrade", MEXC will also provide you with the highest quality financial services whether you are purchasing NFT or investing in Web3.0 projects.