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.

Recommended content


Recommended Content

Editors’ Picks

Is Ethereum's comeback real?

Is Ethereum's comeback real?

Ethereum price hovers above $2,500 on Friday after soaring nearly 100% since early April's bottom. The ETH Pectra upgrade has boosted over 11,000 EIP-7702 authorizations in a week, indicating healthy uptake by wallets and dApps. The growing stablecoin usage and tokenization, Layer 2 institutionalization and ETH short unwind support the price rally.

Bitcoin Weekly Forecast: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand

Bitcoin Weekly Forecast: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand

Bitcoin price stabilizes around $103,000 on Friday after facing multiple rejections at the key $105,000 resistance level throughout the week. Risk-on sentiment prevails, driven by global trade deals, strong corporate accumulation, and spot ETF inflows.

EOS price climbs as sentiment improves following $3 million purchase by President Trump's World Liberty Financial

EOS price climbs as sentiment improves following $3 million purchase by President Trump's World Liberty Financial

EOS price rebounds from short-term support at $0.75, boosting bullish sentiment amid broader market consolidation. President Donald Trump's World Liberty Financial purchases $3 million worth of EOS at an average price of $0.82.

FTX creditors set to receive over $5 billion in recovery plan payout handled by Kraken and BitGo

FTX creditors set to receive over $5 billion in recovery plan payout handled by Kraken and BitGo

Defunct crypto exchange FTX will distribute $5 billion to holders of allowed claims starting May 30. Creditors with completed pre-distribution requirements will receive between 54% and 120% of their original claims.

Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand

Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand

Bitcoin (BTC) price stabilizes at around $103,000 when writing on Friday, after facing multiple rejections at the key $105,000 resistance level throughout the week.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP