The Ethereum community has anticipated Ethereum’s Shanghai and Capella upgrades for months, dubbed together as the “Shapella” upgrade. Many holders believed that the Ethereum Improvement Proposal would be short-term bearish for ether, as millions of tokens were unlocked alongside the upgrade.
With the price of ether rallying more than 5% following the upgrade, these bearish predictions have proven to be wrong. Fewer stakers have unstaked their ether than expected, and there’s a strong case to be made that Ethereum’s Shapella upgrade will in fact increase staking rates.
However, investors are looking at the wrong token. Ether is, of course, impacted by the upgrade, but not to the degree that liquid staking derivatives (LSDs) are. The LSD landscape is quickly changing, with new products taking advantage of liquid staking. Let’s explore why LSDs are impacted more than ETH itself, and how holders are taking advantage of these developments.
Liquid Staking, Explained
When E
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