Buterin’s Bull-Run Anxiety
Bitcoin price rose above $30,000 for the first time since June 2022. Ether, on the other hand, is hovering above $2,000 after the long-awaited Shanghai update. Vitalik Buterin, co-founder of Ethereum, commented on the prospects for a bull run in the current situation in the market. Buterin said the network urgently needs to resolve scaling issues before the next crypto bull run.
Buterin spoke on a livestream ahead of the highly anticipated network update called Shapella (a combination of Shanghai and Capella). The founder of Ethereum issued the following warning:
“If we don’t fix scaling before the next bull run, people will have to pay a $500 transaction fee.“
With Ethereum’s transition from the Proof-of-Work system to the Proof-of-Stake system, which took place the previous year, miners have been replaced by validators. By depositing their ETH on the network, these validators can stake and earn a return in return. The latest Shanghai update means that those who have previously deposited their ETH on the blockchain can now withdraw them.
The update also rekindled hopes for Wall Street and institutional investors to enter the market. Mona El Isa, CEO of crypto-focused asset management company Avantgarde Finance, stated that the Shanghai update has the potential to change the rules of the game.
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