Top 5 LSD Crypto Altcoins That Can Soar After the Next Ethereum Upgrade
If you’ve been reading my articles, you know I like covering strong crypto narratives with the potential to generate massive returns. In my previous posts, I covered top AI projects, Chinese altcoins, and Zero-Knowledge tokens.
In this post, I will discuss an interesting crypto event that will take place soon and 5 tokens that are best placed to profit from it.
This event is called the Ethereum Shanghai Upgrade.
The Ethereum Shanghai Upgrade is the first major upgrade of the Ethereum blockchain since The Merge took place in September 2022. It was scheduled for March 2023, but it’s recently been pushed back to early April.
As you probably know, The Merge replaced the Ethereum blockchain’s consensus mechanism from a proof-of-work protocol to a proof-of-stake.
In a proof-of-work system (PoW), used by Bitcoin, for example, miners deploy huge amounts of computing power to confirm transactions. This releases new tokens into circulation which miners receive as a reward for their work.
Proof-of-stake (PoS), on the other hand, requires node validators to validate transactions and mint new tokens which they also receive as a reward. This is eco-friendlier than PoW, but it’s also far more centralized.
To vouch for their integrity, validators must lock away (stake) some of their tokens in special wallets. If they validate invalid transactions, they risk losing their staked tokens.
What does this have to do with the Shanghai Upgrade?
By transitioning from PoW to PoS, the Ethereum network now relies on validators instead of miners to run it. To become an Ethereum validator, you must stake a crazy 32 ETH.
Validators have been staking ETH and accumulating rewards for validating blocks since the launch of Ethereum’s Beacon Chain in December 2020. This was the first step that finally led to the PoS switch.
But the validators’ stake remained locked. After the Shanghai Upgrade, validators will finally, and for the first time, be able to unstake their tokens and cash out their rewards.