1Bitcoiner.com

Ethereum’s recent Shanghai upgrade has caused a surge in institutional investment in staking. According to early data, the largest staking platforms recorded three times more new deposits compared to last month. This is great news for Ethereum investors, as it shows that the upgrade has boosted institutional investors’ confidence in the cryptocurrency.

Top institutional-grade staking service providers have already recorded about three times larger inflows in April compared to all of last month. ConsenSys analyst Michiel Milanovic stated that 80% of the inflows happened after the Shanghai upgrade went live on April 12th. The upgrade has lived up to its promises, and investors have responded positively.

The Shanghai upgrade allowed withdrawals of 18 million tokens worth $35 billion, previously locked up in staking contracts. Despite earlier concerns, ETH’s price rallied to $2,100, its highest level in 11 months. This shows that the upgrade has delivered on its promise to increase confidence in the cryptocurrency.

Allowing withdrawals also reduced the liquidity risk associated with locking up ETH for staking, which has kept some investors at bay before. Kiln, an institutional-grade staking service provider, conducted a survey in February before the Shanghai upgrade, which found that 68% of investors said they intended to start staking or increase their staked amount after the upgrade. This shows that the upgrade has been successful in attracting new investors and increasing the confidence of existing ones.

Kiln has recorded $47 million (24,640 ETH) of new deposits since the Shanghai upgrade, while rival platform Staked.us booked $111 million (58,592 ETH) in inflows, more than double the $51 million (26,667 ETH) of staking rewards withdrawn, per Dune data. However, it’s too early to draw definite conclusions because not all staking providers have enabled withdrawals immediately.

In conclusion, Ethereum’s Shanghai upgrade has boosted institutional investors’ confidence in staking, and this is likely to drive prices up in the long run. However, as with any investment, there are risks involved, so make sure you do your research and invest only what you can afford to lose. Happy investing!