The Prague upgrade is about to arrive, and everyone has been looking forward to it. Here’s a summary of why some major institutions are paying attention to the Prague upgrade:
1. One of the most important aspects of the Prague upgrade is the optimization of the staking mechanism. The maximum staking limit for a single validator has been increased from 32 ETH to 2048 ETH, a remarkable increase of 64 times. This upgrade significantly reduces operational costs for institutions, which can attract more participation and greatly enhance staking security.
2. The reason why the SEC has not yet approved Ethereum ETFs for staking is also due to this. Currently, the number of institutional ETFs that need to be staked takes about a month to complete the staking process, and extracting them takes about half a month. For institutions, this poses a risk as it cannot be done flexibly. However, after the Prague upgrade, millions of Ethereum can be fully staked in just one day, and all can be extracted in half a day.
3. After the Prague upgrade, it also provided the SEC with a reason to approve Ethereum ETFs for staking and sparked interest among other institutions to purchase Ethereum ETFs. Institutions deal with large amounts of capital; as more institutions participate, purchase more, and stake more, the circulation decreases, which, when it comes to token prices, speaks for itself.
