The Ethereum network is undergoing a transformation with the upcoming “Shanghai” upgrade, and its impact on the market remains uncertain. However, in the long term, the upgrade is likely to benefit the network and ETH’s price, possibly dethroning Bitcoin as the world’s largest cryptocurrency by market cap.

According to James Hodges, the managing partner of Amphibian Capital, the upgrade is a crucial step towards increasing liquidity and trading of Ether and attracting more institutional capital into the crypto economy. The implementation of the Beacon Chain mechanism will democratize the staking process and allow for greater participation in the network, leading to increased security and decentralization of the network.

Moreover, the Ethereum network’s transition to a proof-of-stake consensus system and the implementation of EIP-1559 turned ETH into a deflationary asset. These features will make Ether even more deflationary, thereby increasing its value over time.

The upgrade lays the groundwork for increased institutional adoption of cryptocurrencies. Institutional investors are already showing growing interest in Ether as they look to diversify their portfolios and hedge against inflationary pressures. The implementation of the “Merge” upgrade addressed Ethereum’s ESG concerns, which kept many investors out.

While some investors may be worried about a large sell-off of ETH after the upgrade, data suggests that selling pressure may be limited in the near term. CryptoQuant has noted that 60% of the staked ETH supply is currently at a loss. This suggests there may be limited selling pressure on the Ethereum market.

Investors are constantly seeking new ways to accumulate more Ether, with yields on liquid staking provider Lido sitting at 5.4% APR. There is also the option to become a solo validator on the Ethereum network, or to invest in ETH-denominated quantitative hedge funds.

As with any investment decision, it is important to thoroughly research and understand the potential risks and rewards before investing in Ether. However, with the “Shanghai” upgrade and the Ethereum network’s transition to a proof-of-stake consensus system, Ether could potentially reign supreme as one of the world’s top three most valuable assets in the next decade.