The majority of Ethereum (ETH) enthusiasts are scared about the effects Shanghai activation might have on its tokenomics. As it will enable Ether (ETH) withdrawal from staking contracts (“unstaking”), a significant amount of Ether might be released on markets, making some investors worry that this could lead to a price dump.
However, according to Chris Burniske, one of the most well-known blockchain analysts and venture capitalists in the industry, these fears may not be totally correct. In his recent tweet he highlighted one unobvious effect – de-risking factor – that ETH staking is set to become more risk free since Q2 2023 due to Shanghai activation: “Shanghai de-risks Ethereum staking” said Burniske “expect %of $ETH staked 2-4x in quarters following it” adding that those are bullish flows rather than bearish ones and cautioning investors against getting faked out by volatility spikes.
This means more people with various deposits will likely join its ecosystem as they can now feel safer when investing their funds into ETH tokens for long term gains without worrying about potential risks or losses associated with unstaking their tokens prematurely . Therefore , even though there is still an element of uncertainty surrounding this event , it seems like overall sentiment among ETH holders should remain positive .
