Testnet named Zhejiang will be launched on February 1 to test staking.
Validators and ETH staking continue to ramp up as the Shanghai hardfork approaches.

The Ethereum [ETH] network has moved one step closer to the Shanghai hardfork with the launch of a testnet. The testnet, titled Zhejiang, will reportedly serve as a precursor to the eventual launch. This allows network users to test functions that will eventually be implemented in the fork.

Read Ethereum’s [ETH] Price Forecast 2023-24

The launch of Zhejiang beckons

On January 31, an Ethereum developer announced that a public testnet would be released on February 1. It would allow recordings of Beacon Chain. In addition, users can test staked Ether withdrawals, which are part of the Ethereum Improvement Proposal-4895 (EIP) that will be implemented in the next hard fork in Shanghai.

Six days after the testnet goes live, a practice run of the network’s forthcoming Shanghai and Capella improvements will begin.

Using Zhejiang’s public testnet, any Ethereum user can practice withdrawing wagered ETH. When the Shanghai upgrade goes live, all of this functionality will be made available. The developers of the Ethereum Foundation have seen March 2023 as a likely time for the Shanghai hard fork.

The developers have scheduled EIP-4844 for release in May or June 2023 as the next upgrade after Shanghai. EIP-4844 has the potential to reduce transaction costs by an order of magnitude and increase the scalability of layer-2 rollups on Ethereum by a factor of 100.

ETH staking and validators continue to rise

Another piece of good news: according to Glassnode, stakes in Ethereum have been steadily rising over the past few weeks. The total stake of ETH had passed 16 million at the time of writing. In addition, according to Glassnode, more than 500,000 validators were present.

The total number of validators on the network grows with the increase in ETH deployment.

Source: Glassnode

It was also necessary to examine the proportion of truly profitable bets given the increase in Ethereum staking. According to data from Dune Analytics, there were a few ETH gains on the total amount invested. The previous ETH wagered was also included in the profit %.

The chart showed that 35.5% of the ETH staked was profitable, while 64.5% was underwater. In addition, there was a strong possibility of a correlation between the price and profitability of ETH staked.

Source: Dune analysis

ETH trading under selling pressure

However, the observed daily timetable chart shows that there has been significant selling pressure on ETH. It was trading at around $1,580 at the time of writing, with selling pressure dominating the trading period, posting a loss of less than 1%.

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Despite the tension, the asset has maintained its price at around $1,500. The $1,500 area may be the new support level, but a breach could cause it to drop even further.

Source: Trade View

The success or failure of the testnet’s debut will determine how it will affect Ethereum and ETH staking.

This post Ethereum Shanghai hardfork: New testnet launches on the network as these stats rise

was published first on https://ambcrypto.com/ethereum-shanghai-hardfork-new-testnet-launches-on-network-as-these-metrics-soar/


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