Brian Mosoff, CEO of Ether Capital, a technology company focused on the Ethereum network, believes that the upcoming Shanghai hard fork is unlikely to have a significant impact on the price of ether (ETH).
The network’s Shapella upgrade, which is scheduled to take place on April 12, will allow users to withdraw the ETH they have staked in the Ethereum blockchain’s consensus system.
While there is a lingering fear in the market that the unlocking of staked ETH could lead to a rush to liquidate and pressure on ETH’s price, Mosoff doesn’t see this happening. In fact, he believes that “a few months down the line,” trading for ETH may look different.
“I expect you will see more ETH get locked into staking, either from solo stakers or, again, you’ll see more structured products come to market,” Mosoff said in an interview with CoinDesk TV’s “First Mover” on Monday.
The Shapella upgrade is considered to be Ethereum’s final shift towards fully implementing its proof-of-stake (PoS) consensus mechanism.
Along with giving users the ability to make withdrawals from their staked ETH, the upgrade will also lower fees and create more room on the blockchain to handle transactions.
According to Mosoff, the network’s upgrade could also attract a new group of investors. By giving new investors the ability to earn yield on their staked ETH, “you’re going to start to see traditional finance begin to move into the space with more confidence,” Mosoff said.
