Former Ark Invest Director Shares Positive Outlook on Shanghai Upgrade’s Effect on Ethereum Token Economy

03/19/2023 05:20 • Digital Disruptors • 89 views

According to reports, Chris Burniske, a former Ark Invest encryption director, posted a message on social media aimed at alleviating Ethereum holders’ concerns about the impact of Shanghai’s activation on the token economy. The Ethereum community believes that the upgraded market in Shanghai will release a large amount of ETH, which will affect prices. However, Chris Burniske said that the Shanghai upgrade will help Ethereum pledge “de risk”, because at this stage, ETH pledge is still in its infancy, with only 15% of ETH pledged. After the Shanghai upgrade, it is expected that more ETHs will be locked. The amount of ETH locked in pledge contracts may increase by 100-300% in the coming quarters, so there will be no panic selling.

Former Ark Invest Encryption Director: It is expected that more ETHs will be locked after the upgrade in Shanghai

Analysis based on this information:

The Ethereum community has been concerned about the impact of Shanghai’s activation on the token economy, as reports suggest that a large amount of ETH will be released, which could affect prices. However, the former Ark Invest encryption director, Chris Burniske, has shared a positive outlook on the situation. In a message posted on social media, Burniske allayed fears of panic selling, stating that the Shanghai upgrade will actually help de-risk Ethereum pledge.

At present, ETH pledge is still in its early stages, with only 15% of ETH pledged. After the Shanghai upgrade, it is expected that more ETHs will be locked in pledge contracts. As a result, the amount of ETH locked in pledge contracts may increase by 100-300% in the coming quarters. This is good news for Ethereum holders as it means that more ETH will be taken out of circulation, which should help stabilize prices.

Burniske’s positive outlook is based on the fact that the upgrade will increase the adoption and use of Ethereum, leading to more development and innovation. This, in turn, will drive demand for ETH, which will help balance the supply and demand ratio. Additionally, Burniske believes that the upgrade will lead to more institutional adoption of Ethereum, which will add to the price stability.

Overall, Burniske’s insight on how the Shanghai upgrade will affect Ethereum’s token economy is reassuring for those invested in ETH. Rather than causing a price decline, the upgrade is expected to have a positive effect by helping to de-risk Ethereum pledge, increasing adoption, driving demand, and leading to more institutional adoption. Ethereum holders can now feel more confident in their investment as they anticipate an increase in locked ETH and a more stable price.

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