Ethereum’s Altair Upgrade Launches This Week, As It Prepares for Migrate to ETH 2.0

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Ethereum's Altair Upgrade Launches This Week, As It Prepares for Migrate to ETH 2.0
Ethereum's Altair Upgrade Launches This Week, As It Prepares for Migrate to ETH 2.0

Ethereum’s London hard fork brought in EIP-1559. The Altair upgrade, scheduled for October 27 this week, will update the beacon chain (the staking chain of ETH 2.0).

Ethereum Prepares to Migrate to Proof-of-stake

The Ethereum blog announced the upgrade in a recent blog post. The Altair beacon chain upgrade is getting set to be activated on the Ethereum mainnet. The upgrade will go live on October 27, 2021 (Wednesday) in epoch 74240.

Ethereum’s upcoming Altair upgrade will add functionality to the network’s beacon chain. Experts consider this to be an important and possible final addition to the network before the “merger”.

Upgrading the beacon chain has no direct impact on Ethereum users or holders. It only affects the consensus mechanism and the node operators.

Staking is key to Ethereum’s Triple Halving narrative. The staking and the fee-burning mechanism together exacerbated the scarcity that drove the price of ETH up. The triple halving is due to the continuous withdrawal of ETH due to staking and burning.

In addition to preparing the Ethereum network for “The Merge”, the focus of the Beacon Chain upgrade is on preparing for Sharding. The introduction of 64 parallel blockchain “shard chains” is intended to reduce the congestion on the Ethereum network.

DeFi TVL Rise As Ethereum Price Increases

As the price of Ethereum rose, several DeFi tokens collapsed. DeFi TVL continues to rise despite falling prices. The total value set in the Defi agreement last week exceeded $233.8 billion.

According to data from the crypto data aggregator Dune Analytics, more than 3.59 million unique wallets have interacted with at least one DeFi protocol.

Analysts on Crypto Twitter argue about the situation in the multi-chain crypto world, where Ethereum has lost its importance and DeFi tokens and L2 solutions have become mainstream. In contrast, the authors of the narrative “Ethereum Triple Halving” argued about the apparent validity of deriving trends and assuming multiple chains.