Ethereum ( ETH-USD ) gapped up to the highest level seen since last August on the heels of the network's successful Shanghai software upgrade. The token climbed 4.4% to $2K as of 10:53 a.m. ET, extending its year-to-date rally to 65%, after reaching as high as $2.01K earlier in the session. The intraday gains easily outpaced that of bitcoin ( BTC-USD ), which gained edged up 1.3% to $30.44K. The update, completed Wednesday evening, enables users of the ether ( ETH-USD ) network to withdraw their ETH tokens that have been staked, a process whereby users can pledge ETH tokens to help secure and validate transactions on the blockchain in return for rewards. Shanghai, or Shapella, marks the end of the network's multi-year transition to a Proof-of-Stake consensus mechanism from Proof-of-Work -- the same one used by bitcoin ( BTC-USD ). "The Shapella upgrade went smoothly and speaks to how amazing the Ethereum community is," said Robert Ellison, chief growth officer of crypto hosting and staking platform Allnodes. "Liquid staking will continue to grow as more non-custodial platforms and services appear on the market, the overall amount of ETH stakers will now start to rise due to withdrawals being enabled, and a good portion of this will flow into Liquid Staking as these platforms mature," he told Seeking Alpha in an emailed statement. When asked why investors should not rush to withdraw their ETH, Ellison said: "Considering Eth is now deflationary, returns rewards consistently, and the risks of uncertainty are gone with withdrawals going live, Eth staking will increase and have a market positive effect." More on Ethereum: Ethereum: Bank Crisis Bull Run But Staking Is Not A Nice Dividend Ethereum is at risk of losing its dominant status in DeFi -- here's why Ethereum's Valuation: Winklevoss Vs. Wood; Who Is Right? Ethereum: The Zhejiang Testnet Means Staking Withdrawals Are Coming
