An Ethereum transformation is on the horizon, and no one is sure how the market will respond. In time the “Shanghai” upgrade may be remembered as a uniquely bullish event for ether (ETH), the world’s second-largest cryptocurrency by market value.

In the short term, however, a number of the world’s leading Ethereum quant traders who historically have outperformed ETH staking yield believe price action will be neutral to potentially bearish due to the expected large increase in circulating supply of ETH after investors are finally able to withdraw their stakes.

Over a longer time horizon Ethereum’s total switch to proof-of-stake is likely to only benefit the network and ETH’s price – enough so to possibly dethrone bitcoin (BTC) as the world’s largest cryptocurrency by market cap.

Amphibian Capital, my firm, takes this logic further and predicts ETH may reign supreme as one of the world’s top three most valuable assets in the next decade. The Shanghai upgrade is a crucial step in that direction, which will likely increase liquidity and trading of ether and possibly attract more institutional capital into the crypto economy.

(By James Hodges)