#ETH# On May 7, Ethereum is set to undergo the Prague upgrade. It has been a year and a half since the last favourable information regarding Bitcoin ETF and Ethereum ETF, and now a significant practical favourable information is finally coming.
Why are institutions closely monitoring this upgrade? Key reason: The most significant improvement lies in the substantial reduction of operational costs for institutions, opening the door to easier participation while greatly enhancing the security of the staking mechanism. Previously, the staking limit for a single account was only 32 Ether, but after the upgrade, it has been directly increased to 2048 Ether, a 64-fold increase, which simplifies operations that originally needed to be spread across dozens of accounts into a single account. The efficiency of resource integration has achieved a leap. This is a policy dividend for institutions — the SEC had previously delayed approving the staking function of the Ethereum ETF due to the cumbersome process, but now, with optimized rules, the regulatory body has no excuse to set barriers. Other institutions will also be more inclined to allocate related ETFs due to the increased convenience of deposits and withdrawals. As large funds enter the market, the circulation of chips decreases, and the upward driving force of the Ethereum price will naturally strengthen. In addition, the upgrade has also reduced the on-chain cost of Layer 2 data, alleviating the transaction burden on users and the pressure on nodes, further solidifying the foundation of decentralization, paving the way for the subsequent explosion of the dApp ecosystem, and attracting more project parties and users to settle in. Recently, the price of Ethereum has been continuously declining, leading to a lack of interest among retail investors regarding the upgrade – retail investors are often driven by immediate market conditions, chasing after highs when the price rises and looking for shorts when it falls, judging value solely based on short-term prices. In contrast, institutional perspectives are entirely different; they capture value turning points through in-depth fundamental analysis, positioning themselves in advance and waiting for long-term value to return. This is precisely the essential difference in investment logic between the two: retail investors focus on current trends, while institutions are grounded in long-term value.
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#ETH# On May 7, Ethereum is set to undergo the Prague upgrade. It has been a year and a half since the last favourable information regarding Bitcoin ETF and Ethereum ETF, and now a significant practical favourable information is finally coming.
Why are institutions closely monitoring this upgrade?
Key reason: The most significant improvement lies in the substantial reduction of operational costs for institutions, opening the door to easier participation while greatly enhancing the security of the staking mechanism. Previously, the staking limit for a single account was only 32 Ether, but after the upgrade, it has been directly increased to 2048 Ether, a 64-fold increase, which simplifies operations that originally needed to be spread across dozens of accounts into a single account. The efficiency of resource integration has achieved a leap. This is a policy dividend for institutions — the SEC had previously delayed approving the staking function of the Ethereum ETF due to the cumbersome process, but now, with optimized rules, the regulatory body has no excuse to set barriers. Other institutions will also be more inclined to allocate related ETFs due to the increased convenience of deposits and withdrawals. As large funds enter the market, the circulation of chips decreases, and the upward driving force of the Ethereum price will naturally strengthen.
In addition, the upgrade has also reduced the on-chain cost of Layer 2 data, alleviating the transaction burden on users and the pressure on nodes, further solidifying the foundation of decentralization, paving the way for the subsequent explosion of the dApp ecosystem, and attracting more project parties and users to settle in.
Recently, the price of Ethereum has been continuously declining, leading to a lack of interest among retail investors regarding the upgrade – retail investors are often driven by immediate market conditions, chasing after highs when the price rises and looking for shorts when it falls, judging value solely based on short-term prices. In contrast, institutional perspectives are entirely different; they capture value turning points through in-depth fundamental analysis, positioning themselves in advance and waiting for long-term value to return. This is precisely the essential difference in investment logic between the two: retail investors focus on current trends, while institutions are grounded in long-term value.