Ethereum's 'Shanghai' Upgrade Promises Boost in Capacity and Reduced Costs
Ethereum, the second-largest cryptocurrency by market cap, is set for a significant upgrade in December, dubbed 'Shanghai', which promises to boost the network's capacity and reduce costs for Layer-2 rollup systems. Meanwhile, corporate investors are increasingly turning to Ethereum staking, with major players like The Ether Machine (ETHM) securing substantial investments.
The Shanghai upgrade, slated for December, will enhance Ethereum's blob capacity. This will lower costs for Layer-2 rollup systems, which sit on top of the Ethereum blockchain and help manage transactions. Such upgrades can have short-term impacts on fees, speed, and market confidence.
Staking ETH, a process of locking up the cryptocurrency to secure the network, offers rewards for participants. ETHM, for instance, has generated 1,350 ETH in staking rewards from its staked treasury. It has secured investments from prominent figures like Andrew Keys and Jeffrey Berns, totalling over $800 million and 319,984 ETH. ETHM has also filed an S-4 registration statement with the SEC, aiming for a business combination in Q4 2025.
Ethereum's total value has reached approximately $135 billion, according to VanEck's October report. Corporate investors buying and staking Ethereum are driving this growth. However, staking also carries risks for non-stakers. The Shanghai upgrade will also improve block verification efficiency using probabilistic sampling, a move that investors and developers should closely monitor alongside Ethereum price and upcoming technical developments.
The combination of increasing corporate staking and the upcoming Shanghai upgrade could further strengthen Ethereum's position. As Ethereum aims to become more scalable and sustainable, these developments may attract more investors and solidify the network's importance in the crypto landscape.
