Ethereum heads toward ETH2 and Triple Halving with Altair upgrade on October 27


  • Following the launch of EIP-1559, the next key upgrade adds features to the beacon chain before the merge.
  • The Altair beacon chain may be the only upgrade to the Ethereum network before transitioning from proof-of-work to proof-of-stake.
  • Despite the drop in prices of most DeFi tokens, TVL crossed $100 billion last week.
  • The launch of "shard chains" is likely to power fast transactions by creating 64 parallel blockchains.

Ethereum's upcoming Altair upgrade will add features to the network's beacon chain. Experts consider this a key and probable final addition to the network before "The Merge."

Ethereum prepares for migration to proof-of-stake, Altair upgrade launches this week

Ethereum's London hard fork brought EIP-1559 into existence. The Altair upgrade scheduled to occur this week on October 27 will make upgrades to the beacon chain (the staking chain of ETH2). 

Staking is key to Ethereum's Triple Halving narrative. Staking and the fee-burning mechanism together fuel the shortage that drives ETH prices higher. The Triple Halving relies on ETH consistently being pulled out of circulation due to staking and burn. 

The Ethereum blog announced the upgrade in a recent blog post. The update reads:

The Altair beacon chain upgrade is ready to be activated on the Ethereum mainnet. The upgrade will go live at epoch 74240 (October 27, 2021, 10:56:23 am UTC).

The beacon chain upgrade does not affect Ethereum users or holders directly. It purely affects the consensus mechanism and node operators.

With the rising price of Ethereum, several DeFi tokens have plunged. Despite a drop in prices, DeFi TVL continues its upward climb. The total value locked in Defi protocols crossed $233.8 billion last week. 

According to crypto data aggregator Dune Analytics, over 3.59 million unique wallets have interacted with at least one DeFi protocol. 

Total DeFi users over time

Total DeFi users over time. 

Analysts on crypto Twitter are arguing the case of the multichain crypto universe where Ethereum becomes less relevant, while DeFi tokens and L2 solutions become mainstream. In contrast, the author of the "Ethereum Triple Halving" narrative debates the validity of extrapolating trends and assuming multichain is obvious. 

In addition to preparing the Ethereum network for "The Merge," the beacon chain upgrade focuses on preparation for "sharding." The launch of 64 parallel blockchains, "shard chains," is expected to reduce congestion on the Ethereum network. 

Analysts have a bullish outlook on ETH price with the upcoming upgrade and statement issued by a former Securities & Exchange Commission (SEC) official. According to the statement, the approval of an Ethereum ETF by the SEC is likely. 

FXStreet analysts have evaluated the ETH price trend and predicted that the altcoin would hit a new all-time high in the near future. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP