According to Brian Mosoff, the CEO of technology company Ether Capital, Ethereum’s upcoming Shanghai hard fork is not likely to have a significant impact on the price of ether (ETH).
In an interview with CoinDesk TV’s “First Mover” on Monday, Mosoff stated that the Shapella upgrade, a combination of “Shanghai” and “Capella,” scheduled for April 12, will likely be a “non-event” in terms of price.
The Shapella upgrade will allow users to withdraw the ether they have “staked” to participate in Ethereum’s blockchain consensus system.
However, some investors fear that the unlocking of the ETH deposited to boost network security could lead to a rush to liquidate, putting pressure on ETH’s price. Despite these concerns, Mosoff does not anticipate a significant impact on price in the short term.
Mosoff believes that in a few months, trading of the second-largest cryptocurrency by market capitalization may look different. He expects to see more ETH locked into staking, either from solo stakers or through more structured products coming to the market.
The Shapella upgrade is considered to be the network’s final shift towards fully implementing its proof-of-stake (PoS) consensus mechanism. The upgrade will lower fees, create more room on the blockchain to handle transactions, and allow the network to attract a new group of investors.
By giving new investors the ability to earn some yield on the ETH they’ve staked, Mosoff believes that “you’re going to start to see traditional finance begin to move into the space with more confidence.” The upgrade could encourage more people to invest in ETH and could help Ethereum solidify its position as a leading player in the cryptocurrency space.
