According to Ultrasound Money, Ethereum’s annual inflation rate was -0.02% on January 15. The total supply of Ethereum has fallen by more than 9,500 tokens after the Merge. This means that the ETH blockchain burns more ETH than it is being minted. ETH still outperformed Bitcoin in gains at the end of January. Market funds have chosen not to take risks and waited for market reaction after the ETH pledge was unlocked. In fact, the ETH/BTC trading pair entered a phase where horizontal operation began in the second half 2021. The market value for ETH is approximately half that of BTC in this range. This seems to be a value balance that the market recognizes. This balance can only be broken by an external force or a new narrative. The surge in activity on Ethereum’s blockchain leads to a higher deflation of ETH or ETH is more valued by traditional finance. There are no signs of such an increase yet, making it difficult to compare ETH and BTC. According to Coinshares’ most recent quarterly survey of digital asset fund managers (with assets totalling $390 billion), 60% believe that ETH has best growth prospects for 2023. According to Coinshares’ latest quarterly survey of digital asset managers, 60% of them believe that ETH has the best growth prospects in 2023. The total rewards, approximately 1 million ETH, can be withdrawn instantly. However, if the staker wants to withdraw all 32 ETH of each node along with the reward, that is possible only if the consensus layer is being withdrawn. This involves network security and requires waiting in line. The total number of ETH nodes currently is more than 500,000. This data shows that Shanghai can withdraw up 1,800 nodes (57.600 ETH per day) after an upgrade. If only 10% of the nodes have to withdraw, they will need to wait for more than a year. It is worth noting, that validators must now queue up to enter the Ethereum network. The daily entry amount and daily exit amount are the exact same algorithms. Based on 500,000 nodes, 1,800 nodes are available each day. This can help keep Ethereum’s overall consensus mechanism stable and allow for a soft landing. ETH pledged in Lido will be able to obtain stETH. This can be traded on DEX and other platforms. Verifiers who are not willing to make a long-term pledge may have withdrawn from Ethereum pledge ecology. The remaining pledged ETH is not expected to face too much selling pressure. However, after the Shanghai upgrade is completed, the Ethereum mainnet will allow for flexible withdrawal of the ETH pledged (the queue time won’t be too long). The ETH pledge interest rate can be dynamic. The pledge return rate is high when there are fewer pledged ETH. The official ETH pledge APR chart shows that 17.6% can be achieved when the pledge total is 790,000. The APR will gradually decrease if there is a large amount of ETH pledges. The APR will drop to 5% when the amount of ETH pledged reaches ten million. This is the current level. The APR will drop to 5% if the pledged amount reaches 10 million. Favorable option. Pledge withdrawal testnet. On February 1, Zhejiang’s public testnet was launched allowing Ethereum users to simulate the process for withdrawing their pledged ETH. Validators will be able to use the Zhejiang public testing network to perform the withdrawal function. It was launched at 10 AM on February 1st. This testnet is designed to replicate the process of the Shanghai upgrade. The ethereum core developers are also monitoring the mass usage of these features and making adjustments as necessary. This is mainly due to the high capital investment. The Ethereum Foundation had previously cited March 2023 as the likely date for the Shanghai hardfork. Recent news from Terence Tsao (ethernet core developer) suggests that the Shanghai upgrade could be completed in March or April. According to Ethereum core developer Terence Tsao, the Shanghai upgrade will be completed in March or April. This will allow for Ethereum developers to release EIP-48444 in May or June 2023. This could reduce transaction fees by orders-of-magnitude and increase the scalability L2 rollup on Ethereum 100 times. According to Messari’s recent report, the merger represents a significant shift in Ethereum’s business strategy. Switching to the PoS consensus mechanism has made Ethereum’s environmental impact less than 99%. This makes it more attractive for investors who are interested in corporate governance (ESG) and environmental, social, and corporate governance (ESG) issues. It reduces the selling pressure of miners by almost $500 million per month, and it reduces new issuance by 95%. The fee-burning mechanism Ethereum was implemented in EIP-1559, August 2021. It makes Ethereum a net deflationary asset, with real yield, and has burned approximately 85% of all transaction fees. The remaining 15% were distributed to miners as tips. Ethereum’s supply will become deflationary if the transaction fees are higher than the network’s issue rate. These applications contribute the most to Ethereum’s burning: Dex transactions (Uniswap), stablecoin transactions (usdt), NFT transaction (OpenSea), wallets, MetaMask), and on-chain transfers. These applications also keep a significant amount of ETH burned during the bear market. Messari estimates that the ethereum network will experience steady-state inflation of 1% to 2% per annum, depending on the demand for block space. According to Messari, the yield in 2023 could range between 5% to 7% depending on how much block space is needed. This would establish a “risk-free rate for Ethereum’s financial system.” Although overall yields are slightly higher at the moment, Messari expects that yields will eventually fall and return to normal as staking becomes easier and derivatives such as Lido’s Staked ETH(stETH) become more popular. Institutional holdings remain stable and ETH centralized exchanges will only account for about 4%. It is a good sign that more ETH is being held on-chain and pledged on ETH’s beacon chain, which is crucial for the ecological development. It is also a positive sign. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuHaroldCoincu NewsTags: bitcoinBlockchainEIP-1559EIP-4844ETHEthereumShanghai upgradeThe MergeZhejiang