First, we need to understand why major institutions and professional investors are focusing on the Prague upgrade.
1. One of the most important aspects of the Prague upgrade is: optimization of the staking mechanism.
The maximum staking limit for a single validator has been increased from 32 ETH to 2048 ETH, a 64-fold increase.
This upgrade significantly reduces institutional operating costs, attracting more institutions to participate, and greatly increases staking security.
The reason why the SEC has not approved the Ethereum ETF for staking for a long time is also related to this.
Currently, the number of ETFs institutions have to stake takes about a month to complete, and withdrawing takes about half a month. For institutions, this is a risk as it cannot be done on a whim.
However, after the Prague upgrade, millions of Ethereum can be fully staked in just one day, and can be completely withdrawn in half a day.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 in purchasing Ethereum ETFs.
As Ethereum's price has been continuously falling recently, the market almost unanimously believes that Ethereum has collapsed. Therefore, for retail investors, they may not even care about what the Prague upgrade is.
This is also a distinction between retail investors and professional investors. Retail investors focus on the present: whoever performs well, they buy that.
Professional investors invest in the future by analyzing various aspects, researching, finding entry points in the market, and then waiting for value to return.
To put it more plainly, currently everyone thinks Bitcoin, Solana, Sui, and some other coins are performing well; they might just be rising and you think they are good, but buying them doesn’t necessarily mean you will make a profit.
So when we invest, we must be objective. We cannot subjectively think something is good or bad based on price fluctuations; otherwise, we will always be behind the curve.
