One of the most important aspects of the Prague upgrade is the optimization of the staking mechanism.
The maximum staking cap for a single validator has been raised from 32 ETH to 2048 ETH, increasing it by a full 64 times.
This upgrade significantly reduces operational costs for institutions, making it more attractive for more institutions to participate, while also greatly increasing the security of staking.
The reason why the SEC has not yet approved the Ethereum ETF staking is also here,
Currently, the number of ETFs held by institutions requires about a month to stake, and it takes about half a month to withdraw. For institutions, this poses a risk because it can't be accessed freely.
However, after the Prague upgrade, several million Ethereum can be fully staked in just one day, and all can be withdrawn in half a day,
Therefore, after the Prague upgrade, it also provided the SEC with a reason to approve Ethereum ETF staking and sparked interest among other institutions to purchase Ethereum ETFs.
Institutions are large funds. With more participating institutions, more purchases, and more staking, the liquidity decreases, which goes without saying for the price of the coin.
