The Ethereum network experienced notable inflows since it completed the much-awaited Shanghai upgrade on April 12. Citing data from CryptoQuant, CoinDesk noted that crypto exchanges witnessed net inflows of 179,500 Ether (ETH-USD) worth about $375 million in the four days following the Shanghai upgrade. This was the largest four-day net inflow in a month.
Reportedly, 1,101,079 of the second-largest crypto coin were deposited to exchanges between April 13 and April 16, while 921,579 ETH were withdrawn. The Shanghai upgrade marked the first major upgrade since the Merge upgrade last year, which transitioned the Ethereum network to a proof-of-stake system from a proof-of-work mechanism.
The Shanghai upgrade to the Ethereum blockchain allows investors to redeem an offshoot of ether tokens (also called staked ether tokens) that they have deposited in return for interest on the Ethereum network over the past three years.
The Shanghai upgrade was implemented to enhance liquidity for stakers and validators who intend to withdraw their funds. The upgrade is seen as a move to increase the efficiency of the Ethereum blockchain and reduce transaction fees.
ETH-USD has advanced 75% year-to-date, while Bitcoin (BTC-USD) has jumped 84%. After a disastrous 2022, the crypto market has rebounded strongly even as regulators are concerned about the significant risks associated with this space.
