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.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.

More Dogwifhat News

Runes likely to have massive support after BRC-20 and Ordinals frenzy

Runes likely to have massive support after BRC-20 and Ordinals frenzy

PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.

More Cryptocurrencies News

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.

More Ethereum News

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis