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Is the Ethereum Prague upgrade on May 7 worth following? Is Ethereum really trash?
First, we need to understand why major institutions and professional investors are following the Prague upgrade.
1. One of the most important aspects of the Prague upgrade is the optimization of the staking mechanism. The maximum staking listing for a single validator has been increased from 32 ETH to 2,048 ETH, an increase of 64 times. This upgrade significantly reduces institutional operating costs, can attract more institutional participation, and also greatly increases staking security. The reason why the SEC has not pledged through the Ethereum ETF is also here, and how to take the number of ETFs of the current institutions to pledge, it takes about a month to complete the pledge, and it takes half a month to withdraw it. However, after the Prague upgrade is passed, millions of Ethereum can be fully pledged in only 1 day, and all can be withdrawn in half a day, so after the Prague upgrade, it also gave the SEC a reason to pledge through the Ethereum ETF and gave other institutions the interest to buy the Ethereum ETF. Institutions are all large funds, and there are more institutions involved, more purchases, and more pledges, and the smaller the circulation, needless to say about the currency price.
2. Enhanced Layer2 data availability, simply put, means optimizing and reducing the cost of data publishing for Layer2, lowering user transaction fees, reducing the burden on nodes, increasing the degree of decentralization, laying the foundation for the future dApp ecosystem, and attracting more project parties and users. There are also many upgrades in the pipeline for Bragley, which are also worth looking forward to!
As the price of Ethereum has been continuously falling recently, the market almost unanimously believes that Ethereum has collapsed. For many, the Prague upgrade may not even be a concern. This highlights the difference between retail investors and professional investors. Retail investors focus on the present, who is performing well and who is strong, while professional investors invest in the future. They analyze and research from various aspects, looking for buying points in the market, and then waiting for value to return. To put it bluntly, currently, everyone thinks that Bitcoin, Sol, Sui, and some other coins are performing well. Just because they have risen does not mean they are good; buying them does not necessarily guarantee profit. However, for professional investors who have studied these coins in depth, they have already positioned themselves and are now significantly profiting and starting to cash out.