- ETH is trading above $1,900 for the first time since August 2022.
- Ether is pumping despite ETH staking withdrawals being enabled next week.
- LSD tokens like LDO and RPL have also seen a significant increase in value in the past few days.
The crypto industry has been in one of the roughest bear markets ever. The majority of alternative tokens have plummeted more than 90% from their highs. Blue chip coins like Bitcoin (BTC) and Ethereum (ETH) also dropped over 70%.
However, the market has been improving lately. For example, ether has just broken $1,900 despite the Shapella upgrade happening next week.
Ethereum Breaks $1,900 Ahead of Shapella Upgrade
Ethereum’s native currency has enjoyed a steady upside in the past few weeks. On Wednesday, ETH broke $1,900 for the first time since August 2022.
ETH is currently trading at $1,915, up 2.8% on the day and 7.6% on the week, according to data from CoinGecko. Ether’s market cap has climbed over $230 billion and currently stands at $230.7 billion.
ETH price action. Source: CoinGecko.
Ether pumping is exciting to see, given the upcoming Shapella upgrade. Shapella is a portmanteau of Shanghai and Capella, two Ethereum upgrades that are going to enable staked ETH withdrawals on April 12.
Some believe that the enabling of ETH withdrawals will lead to a significant dump in ether’s price. That’s because there are currently 18 million ETH staked worth around $34.5 billion that will become available for withdrawing and, potentially, selling.
On the other hand, ETH staking withdrawals are bullish for liquid staking derivatives (LSDs), which offer a more convenient way of staking ETH. Many believe that at least some portion of the current locked ETH will be instead staked with LSDs.
LSD Tokens Boom
LSD governance tokens have also significantly increased in value in the past week.
For example, the most popular LSD protocol Lido’s governance token, LDO, is up 6.5% on the day and 15.2% on the week. It’s currently trading at $2.69 and is the 31st most valuable token.
Rocket Pool’s RPL is also trading at 6.5% higher than yesterday. One RPL is currently worth $48.26.
The increase in LSD token value aligns with the belief that the current stakers that have ETH locked will move it to LSDs. That’s because LSDs offer a liquid token in exchange for ETH that can be used across various decentralized finance (DeFi) platforms.
On the Flipside
- The rise in ETH’s price can be a bull trap as weakening economic data points to a potential recession in the U.S. and worldwide.
Why You Should Care
ETH is one of the most desired assets in the crypto market. However, users should always do their own research before deciding where to invest and what asset to choose, especially in these uncertain economic times.
Read more about Shapella’s potential impact on the price of ETH:
ETH Staking Withdrawals Confirmed: Ethereum Devs Reveal Date
Read more about a huge NFT sale on Polygon:
Polygon Sees Biggest 24-Hour NFT Sale with y00ts Fetching 75 ETH
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