Explore the difference between Spot and Perpetual Futures and find out how you can navigate volatile markets with these two trading methods.

Bitcoin moves 20% in an hour. Ethereum nose-dives as a whale dumps holdings. The crypto market is a poster child of volatility, and panicked traders may scramble. Others, calmer, may seize the chaos in order to profit. What separates these two outcomes? Often, it’s the trader’s hard choice of weapon.

Although spot trading and perpetual futures are both popular trading methods in crypto, their mechanics — and risks — are worlds apart. Spot trading offers simplicity and direct ownership, while perpetual futures provide leverage and flexibility. Each method carries its unique risks. 

In volatile markets, these tools behave differently, and a poor understanding of their dynamics can turn a calculated risk into a catastrophe. This article dissects spot and perpetual futures, explains why volatility amplifies their risks — and shows you how to choose the right strategy when markets go haywire. 

 is the buying or selling of a digital asset (like 

) for immediate delivery and settlement at its current market price. When you trade on spot, you directly exchange cash or 

 for the asset, with no expiration dates, 

You directly and physically own the asset as soon as the transaction is completed. The trade is settled on the spot (hence the name), meaning the exchange of the asset and the payment happen almost instantaneously, eliminating the risk of price fluctuations during the settlement period.

Say Bitcoin is priced at $100,000, and you buy 1 BTC on a spot exchange such as Bybit. You pay $100,000 (or equivalent in stablecoins) and immediately receive the Bitcoin in your wallet. If the price crashes to $90,000 the next day, your BTC is now worth $90,000 — a 10% loss. If, on the other hand, it surges to $106,000, your gain is 6%. The risk and reward are straightforward: you’re fully exposed to the asset’s price movement, with no amplified gains or losses. 

Here’s a visualization of the mechanics:

[Crypto Exchange] → [Deposit Fiat Currency/Stablecoins] → [Purchase Cryptocurrency on Spot Market] → [Wallet] 

 (or "perps") are derivative contracts or agreements to buy or sell an asset at a predetermined price at any time in the future. They let traders speculate on an asset’s price without ever taking ownership of it. 

Unlike traditional futures, which expire on a set date, perpetuals have no expiration — hence the name. Instead, they rely on funding rates to tether their prices to the underlying spot market. If combined with leverage, they’re a high-risk, high-reward tool for potentially profiting in volatile markets. 

Perpetual futures allow traders to use leverage, meaning the exposure is larger than the initial capital. For example, with 10x leverage, a $1,000 margin lets you open a $10,000 position. If Bitcoin rises 10%, your profit is $1,000 (10% of $10,000), doubling your initial margin. But if Bitcoin drops 10%, you lose your entire margin ($1,000) and face 

. Leverage magnifies volatility’s impact, turning small price swings into existential risks.

 is the collateral required to open a leveraged position (e.g., $1,000 for a $10,000 position at 10x), while the 

 is the minimum collateral needed to keep the position open. If your margin falls below this threshold, due to losses, you must add more funds or the exchange liquidates your position automatically. 

Let’s assume you open a 10x long on Ethereum with a $1,000 margin. If ETH drops 9%, your loss is $900, leaving $100 in margin. If the maintenance margin is 5% ($50), you’re still safe. But a 10% drop in Ethereum wipes out your margin, triggering liquidation. 

Funding rates are periodic payments (usually every eight hours) between 

 traders to keep perpetual futures prices close to the spot price. A positive funding rate exists when longs pay shorts. This happens when perpetuals trade above the spot price, incentivizing traders to sell (short). Negative funding rates — meaning that shorts pay long — occur when perpetuals trade below the spot price, encouraging buying (going long). 

In volatile markets, funding rates can swing wildly. For example, during a Bitcoin rally, excessive bullish sentiment may push perpetuals’ prices above spot prices, forcing longs to pay hefty fees to shorts. 

Trading a perp looks something like this:

[Trader’s Margin] → [Leverage (e.g., 10x)] → [Open Position] 

[Price Movement] → [Profit/Loss Calculated in Real Time] 

[Funding Rate Payments] (Every 8 Hours) 

[Liquidation if Margin < Maintenance Threshold] 

The Crucial Difference: Pricing Mechanisms

Traders must understand how prices are set in spot trading versus perpetual futures, especially in volatile markets, as mispricing can lead to unexpected losses or missed opportunities. 

 on a single exchange. When you buy Bitcoin on Bybit, the price reflects the highest 

 (sell order) in Bybit’s order book at that moment. When more people want to buy an asset than sell it, the price increases. Conversely, when more people want to sell than buy, the asset’s price drops.

However, spot prices can vary wildly between exchanges. High-volume exchanges, such as Binance or Bybit, typically have tighter 

 (smaller gaps between bid/ask prices). Regulatory restrictions and/or regional buying/selling pressure can also create price disparities. 

Perpetual futures prices aren’t tied to a single exchange. Instead, they track an index price, a weighted average of spot prices from multiple reputable exchanges. This arrangement prevents manipulation, and ensures fairness.

First, reputable exchanges with strong liquidity, such as Binance, Bybit and Kraken, are selected as contributors. Weights are then assigned based on trading volume, giving greater influence to exchanges with higher activity. The index price is computed using a weighted average, whereby (for instance) Binance contributes 50%, Bybit 30% and Kraken 20%, resulting in a balanced and representative market price.

Here’s a visual aid for the calculation: 

Index Price = (Binance Price × 50%) + (Bybit Price × 30%) + (Kraken Price × 20%).

Perpetual Futures Price ≈ Index Price + Funding Rate Adjustments 

Withdrawal halts occur when exchanges temporarily block users from moving assets off-platform. They are rare but catastrophic events, often triggered by extreme volatility, regulatory crackdowns or security breaches. These halts expose the fragility of spot markets, while highlighting the resilience of perpetual futures.

Imagine an exchange suddenly halts withdrawals. Its spot market turns into an isolated bubble, cut off from the broader crypto ecosystem. Here’s how this could happen:

 traders help balance prices across exchanges. If BTC is cheaper on one platform, some traders will buy it there and sell it on another where Bitcoin’s price is higher, keeping prices in sync. But when withdrawals are frozen, traders can’t move assets, making cross-exchange arbitrage impossible.

Let’s say Binance halts BTC withdrawals during a market crash. Panic selling on Binance drives BTC’s price down to $25,000, while on Bybit, it remains at $28,000. Under normal conditions, arbitrageurs would step in, buying cheap BTC on Binance and selling it on Bybit to close the gap. But with withdrawals locked, Binance’s price remains disconnected.

With liquidity trapped, bad actors can exploit the situation. A 

 could dump BTC on Binance, crashing its price to $22,000, while Bybit keeps trading at $28,000. Retail traders on Binance would suffer large losses as they’d be unable to transfer assets or take advantage of the price difference.

When withdrawals freeze, spot markets fracture, leaving traders stranded in a distorted price bubble, with no hope of escape until normal operations resume.

Perpetual futures contracts avoid the chaos of isolated spot markets by relying on an index price aggregated from multiple exchanges. This mechanism keeps them anchored to the broader market, even when individual platforms experience disruptions. 

For example, if Binance suddenly halts withdrawals, its BTC price may diverge from the rest of the market. However, because the index also includes prices from exchanges like Bybit and Kraken, it remains stable. Even with Binance carrying a 50% weight in the index, Bybit (30%) and Kraken (20%) ensure that the final calculation reflects a more accurate market value. This mechanism prevents traders from becoming trapped in a price bubble caused by a single exchange’s issues.

Another advantage is resistance to manipulation. If a bad actor tries to crash BTC’s price on one exchange, their influence on the index remains limited. To meaningfully distort the index price, they would need to control multiple major exchanges — a far more challenging and costly feat. 

This hardiness makes perpetual futures a more reliable option during crisis scenarios. Spot traders may get stuck with distorted prices when withdrawals are halted, but perps remain tethered to a broader market view. While they’re not immune to volatility, their reliance on aggregated data provides a crucial safeguard. However, traders must also consider funding rates and leverage risks.

Navigating a Withdrawal Halt: Staying Calm and Informed 

A crypto withdrawal halt — whether due to a flash crash, regulatory action or technical failure — can send traders into a frenzy. Prices may swing unpredictably as speculation runs wild and liquidity dries up. Nevertheless, survival in these moments is about keeping a level head.

Before making any moves, verify the situation. Fear-driven rumors spread fast, but official channels provide the facts. Exchanges like Bybit now offer real-time transparency on liquidations via their APIs, and CEO Ben Zhou has been vocal about publishing 

 during crises. Trust credible sources, not whispers from anonymous Telegram groups.

Emotional trading is the fastest way to lock in losses. Spot market prices on a halted exchange can detach from reality, plunging far below the broader market. Selling into that panic only benefits manipulators. Likewise, overleveraging on perpetual futures can backfire during times of extreme volatility. Traders who endure these moments best are the ones who stick to their risk management principles and wait for conditions to stabilize.

Bybit is setting new standards by committing to transparency, publicizing real-time liquidation data and encouraging open communication. During times of uncertainty, reliable data keeps traders grounded, helping them separate signals from noise and navigate volatility with clarity rather than fear.

Volatile markets test the strengths and weaknesses of both spot and perpetual futures trading. 

Cryptocurrency markets thrive on volatility, but surviving and profiting from volatility depends upon choosing the right tools. Spot trading offers direct asset ownership, simplicity and no liquidation risk, but it can be vulnerable to exchange-specific halts and price slippage during market turmoil. On the other hand, perpetual futures trading allows traders to profit in any market direction, benefit from leverage and avoid single-exchange manipulation through index-based pricing, but it also carries liquidation risks, complexity and funding rate costs. 

Regardless of your trading method of choice, risk management is crucial. Educate yourself and set 

 to minimize exposure. In addition, dive into Bybit’s 

 to sharpen your edge, and learn how to get started with 

Intermediate

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Spot vs. Perpetual Futures: Stay Ahead of the Curve in Volatile Markets

Ankr has been chosen to power TAC, a groundbreaking TON Network extension that brings full EVM compatibility to TON. 

The S&P 500 rose 0.36%, led by consumer staples, financials, and tech, as investors awaited the jobs report. Gold fell 0.38% to $2,852 amid rising yields and profit-taking before the jobs report but remains near YTD highs. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.81%, with Bitcoin and Ether dropping by 0.44% and 2.91%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 3.0% following Berachain's mainnet launch and $632M BERA airdrop announcement.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. Berachain launched its 

 on February 6, alongside a $632 million BERA airdrop to eligible users. Around 79 million BERA tokens were distributed, primarily to Bong Bears NFT holders. BERA serves as the network’s gas and staking token. Berachain uses a Proof-of-Liquidity consensus to enhance security and liquidity. Token allocations also include funds for community initiatives, ecosystem R&D, and institutional investors.

Check Out the Latest Prices, Charts, and Data of 

, a groundbreaking TON Network extension that brings full EVM compatibility to TON. TAC enables Ethereum developers to deploy seamlessly on TON while unlocking access to 100M active wallets and Telegram's 950M users. Built using the Cosmos SDK and Ethermint, TAC integrates Babylon’s Bitcoin staking protocol for enhanced security and decentralization. Assets like Teleport BTC (tgBTC), stTON, and tsTON will support restaking within TAC’s infrastructure. As the first blockchain leveraging Ankr’s Bitcoin Secured Infrastructure, TAC bridges Ethereum’s liquidity with TON’s scalability, advancing Web3 growth within Telegram’s ecosystem.

Yesterday, BTC Spot ETFs had $140.2M in outflows, with GBTC losing $42.2M and non-GBTC funds dropping $98.0M.

Kuroro Wilds, an Ethereum RPG on Ronin, launched a 

 campaign ahead of its KURO token launch. Players earn rewards by completing quests, social tasks, and referrals. The event offers 10M KURO and Treasure Eggs, running until mid-February. VIP pass holders get extra rewards, while top players can win additional prizes. KURO’s launch date is yet to be announced.

Beginner

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Ankr Powers TAC to Bridge TON and Ethereum with Bitcoin-Secured Infrastructure for Enhanced Web3 Growth

Discover key strategies for P2P crypto sellers on Bybit. Learn how to off-ramp securely, set competitive prices, and maximize profits with zero fees.

Crypto off-ramping and on-ramping — respectively, converting your cryptocurrency into fiat money to take it off-chain, and buying crypto funds with fiat currencies — are key processes that support the tight connection between the traditional finance and cryptocurrency markets. 

Among the various key methods of off-ramping and on-ramping, 

 (P2P) trading stands out for several reasons. It lets you cut out intermediaries from your crypto buy or sell transactions, and creates opportunities to use a wide range of national currencies, among other advantages. However, many P2P platforms pose serious risks to buyers and sellers, with 

 and disputes between the transacting parties common on some less-regulated and less secure platforms.

Bybit’s P2P Trading platform allows you to use crypto off-ramping and on-ramping services in complete security, as it benefits from the platform’s escrow system, user reputation model and well-protected trading environment offered by one of the leading cryptocurrency exchanges in the world. For sellers of crypto for fiat, Bybit’s P2P Trading offers some of the best options around in terms of costs, convenience and security. This article covers all the nuances of P2P off-ramping, and shows you how you can off-ramp via the Bybit P2P Trading platform.

Understanding On- and Off-Ramping as a P2P Seller

While closely connected, the traditional and crypto finance systems operate as separate markets of their own. You can’t use your dollars, euros, pounds or yuan in their original form on the 

 (BTC) blockchain, or invest in a yield-bearing product on a 

 (ETH). Likewise, buying your morning coffee or that nice car you’ve been saving for in bitcoins or other cryptocurrencies is still a rarity. However, the number of traditional retailers accepting direct crypto payments is on the rise.

In order to move your funds between the traditional finance system and the cryptocurrency world, you’ll need to use on-ramping and off-ramping.

On-ramping refers to the conversion of fiat currency into crypto to bring your funds 

. Most people who start their cryptocurrency journey will use on-ramping services to acquire their first crypto holdings. Seasoned crypto users also make extensive use of on-ramping when moving funds between a 

 environment and traditional finance sources.

On-ramping solutions let you pay using widely accepted bank cards, mobile wallets, bank transfers and more. As long as your card or account gives you access to some fiat money, you can acquire cryptocurrency in a matter of seconds (or minutes, in most cases). Various brokerages and P2P platforms are also available to facilitate easy on-ramping.

Off-ramping is the reverse process of on-ramping: it allows you to sell your cryptocurrency for fiat currency in order to return your funds to the traditional finance ecosystem. Using off-ramping services, you can convert a wide range of cryptocurrencies into the many national fiat currencies on offer. Just as with on-ramping, you can choose from various methods to off-ramp. These include selling crypto on exchange platforms, P2P marketplaces or via some payment processors in order to have your fiat funds deposited into your bank account, mobile wallet or bank card.

Among the multiple methods for off-ramping, P2P operations are particularly attractive, due to the absence of intermediary costs. In particular, Bybit’s P2P Trading allows you to off-ramp with 

, offering multiple payment methods and direct transactions with buyers around the world.

Finding the Right Way to Off-Ramp Crypto as a Seller

Selling crypto in an off-ramping environment can be competitive, as buyers will see offers from numerous sellers offering the same crypto asset. Payment processing issues — or fraudsters — may also jeopardize your selling experience. Some key points to consider when you sell crypto for fiat currency are as follows:

Whether you choose bank transfers, online payment processors like PayPal, mobile wallets or other formats to off-ramp your funds, ensure that your preferred method supports the type of national currency you sell for, the mode of transfer and any appropriate daily (or other) limits.

The Bybit P2P platform also provides various tools to avoid some common issues in off-ramp sales. For instance, if you’ve completed an order, and have realized that the buyer has underpaid (or hasn’t paid at all), you can quickly request a top-up or send an urgent payment request in the 

. If the buyer refuses to rectify the issue, you can also file a dispute with a Bybit P2P Appeal Specialist for investigation.

You can adopt certain strategies to maximize your profits as a P2P crypto seller. One way to optimize your trading outcomes is to regularly update your listings, based on the prevalent market conditions and the overall activity on the trading platform. For instance, being active during peak trading hours can work wonders for achieving successful sales.

Building and maintaining an exemplary seller reputation on the Bybit P2P platform is also important. One particularly useful feature is that you can transparently view key reputational metrics, such as successful order completion rates. By maintaining perfect order completion rates, you instill trust in your services. Earning the 

designation is also recommended to help boost your reputation.

Finally, being flexible in terms of your order options is also a key way to optimize your off-ramp sales. For instance, traders who offer to sell their crypto for a broader range of national fiat currencies are likely to attract more buyers. Try to expand your offer to cover as many fiat currencies as you can handle practically.

To start as a seller on the Bybit P2P platform, you must first deposit your crypto funds into your Funding Account. During transactions, your funds will be held in escrow to ensure a safe trading experience for all parties involved. To further boost your sales, you can choose to be a maker and advertise your listings by setting preferred rates, payment methods, order limits and fiat currencies accepted.

 — classifications that carry significant reputational benefits — you can initiate the verification procedure by first providing a security deposit. 

: In order to ensure that you have enough funds to provide the security deposit, keep a balance of at least 1,000 

Last but not least, ensure that you manage your interactions and transactions efficiently by promptly releasing funds during sales. Maintaining high order completion rates and a great reputation are critical to instilling trust among potential buyers. Additionally, sellers with poor transaction histories risk having their sale ads hidden.

Bybit’s P2P Trading platform offers a secure and efficient environment in which to sell your crypto for off-ramping purposes. The platform’s escrow system, flexible advertising options, zero transaction fees, global access and choice of over 650 payment methods, 300 cryptocurrencies and 60 fiat currencies make it one of the best products on the market for off-rampers. Moreover, its competitive rates and flexible currency options for buyers help you further optimize your selling experience on the platform for profitable, efficient and easy off-ramping.

Bybit P2P sell crypto.png

Bybit P2P for Sellers: Your Key to Smooth Crypto On- and Off-Ramping

Berachain is a high-performance Layer 1 blockchain that utilizes a Proof-of-Liquidity consensus mechanism to align network security with ecosystem liquidity.

Liquidity fragmentation and capital inefficiency create critical bottlenecks for 

 (PoS) systems locking assets away from productive use. To address this fundamental challenge, Berachain has introduced a novel Proof-of-Liquidity 

 that aligns network security with ecosystem liquidity.

This article explores Berachain's innovative architecture, tri-token system and native DeFi applications that could reshape liquidity provision. We'll examine the project's evolution from an 

, and evaluate its potential impact as it approaches mainnet launch.

 is a high-performance Layer 1 blockchain that utilizes a Proof-of-Liquidity consensus mechanism to align network security with ecosystem liquidity, while maintaining 

-identical execution for seamless Ethereum compatibility.

Proof-of-Liquidity (PoL) addresses a critical flaw in traditional PoS systems: the misalignment of incentives. PoS validators earn rewards without engaging with protocols or users while projects retain most tokens for themselves, creating a fragmented ecosystem that limits growth.

PoL establishes a framework whereby network security and liquidity work together. The system requires validators and liquidity providers to collaborate, with validators distributing rewards to liquidity pools and providers earning governance rights through active participation.

On Berachain, PoL operates through a simple cycle:

This innovative mechanism ensures that all Berachain ecosystem participants share in the network's success. Validators seek delegations to boost rewards, protocols offer incentives to attract liquidity and providers earn governance rights through active participation. The result is an ecosystem in which security, liquidity and growth reinforce each other.

Berachain began unexpectedly as Bong Bears, a community-driven NFT project launched in August 2021 by anonymous developers Papa Bear and Smokey the Bera. What started as a playful experiment with a 0.0694 ETH mint price evolved into serious innovation.

The team, joined by Dev Bear, transformed their thriving NFT community into a foundation for tackling DeFi's fundamental challenges, developing a sophisticated L1 platform powered by a PoL consensus. The project's ambition has attracted substantial investment across multiple rounds. In December 2022, Polychain Capital led a $42 million Series A with participation from Hack VC, dao5, Tribe Capital and others.

Following continued development and an undisclosed raise of funds in April 2023, Berachain secured a $100 million Series B in March 2024, backed by Brevan Howard, Framework Ventures, Samsung Next and other prominent investors through a Simple Agreement for Future Tokens (SAFT).

Berachain aims to advance DeFi through critical infrastructure improvements:

By addressing these core challenges, Berachain attempts to establish a new foundation for DeFi whereby network security, capital efficiency and application development work harmoniously to drive sustainable growth.

Berachain operates via the following three key mechanisms.

Unlike EVM-compatible chains that require modifications, Berachain maintains perfect identity with Ethereum's execution layer. Using unmodified clients, such as Geth and Nethermind, Berachain automatically inherits all of Ethereum's capabilities and upgrades.

Berachain's PoL consensus mechanism establishes a sophisticated framework that aligns network security with ecosystem liquidity through a multi-stage process:

 is Berachain's modular consensus framework that integrates CometBFT with any EVM execution environment. Through the Engine API, it enables perfect EVM identity while delivering significant performance improvements.

Built for extensibility, BeaconKit's modular architecture supports custom block builders, rollup layers and data availability solutions. This flexibility serves as a foundation for both L1 and 

 (DApps) to showcase the platform's PoL mechanics while providing essential DeFi infrastructure.

 model. It features dynamic trading fees (0.05–1%) that adjust to asset volatility, while directing 0.1% of all volume to BGT holders.

BEX's innovative gasless transaction system allows users to pay fees in their traded assets rather than in BERA, reducing friction for new users. It enables complex trading strategies through account abstraction (a feature of blockchain that allows users to manage accounts and wallets via 

) and off-chain relayers while maintaining cost efficiency.

 serves as Berachain's native lending protocol, exclusively utilizing HONEY (the Berachain ecosystem’s native stablecoin) as its borrowing currency. This focused approach creates a natural demand for HONEY while maintaining lending market efficiency.

Bend’s risk-adjusted borrowing system lets users collateralize various crypto assets to access HONEY loans. Uniquely, borrowers receive BGT rewards directly through the protocol, creating a powerful incentive for participation while strengthening the platform's governance structure.

 is Berachain's decentralized perpetuals trading platform, in which all positions, collateral and payouts are denominated in HONEY. The platform supports leveraged trading up to 100x, while maintaining a simple, unified experience.

Berps demonstrates Berachain's PoL in action. Liquidity providers deposit HONEY into the 

 vault to serve as trade counterparties, earning both trading fees and BGT emissions. This creates a sustainable balance between trading activity and liquidity depth.

Berachain implements a tri-token architecture to optimize network operations:

 (Berachain Governance Token) is a nontransferable token that powers network governance. Unlike traditional governance tokens, BGT can only be earned through active liquidity provision in approved Reward Vaults, creating a merit-based system in which influence scales with contribution.

 is Berachain's foundational token with two critical functions: powering network transactions as the native gas token and securing the network through validator staking. The total value of staked BERA creates the base layer of security that BGT's liquidity incentives enhance.

, is soft-pegged to the U.S. dollar. The stablecoin maintains its value through a dynamic collateralization process with the following features:

Over the past few months, the Berachain team has playfully hinted that the Berachain project would be launched on mainnet in "Q5" (community shorthand for Q1 2025), following which 

, community members can start engaging through pre-mainnet vaults managed by crypto staking protocols Concrete, Lombard and StakeStone.

, whereby protocols establish liquidity commitments before launch. Shortly after Boyco's completion, Berachain will deploy its mainnet, with vault positions automatically transitioning to native protocols like Kodiak and Dolomite.

 that the project would be launched on mainnet the next day, along with an airdrop of 80 million BERA tokens. 

BERA has a total supply of 500 million tokens, to be distributed as follows:

On Feb 5, 2025, the Berachain Foundation 

 its long-anticipated BERA airdrop, distributing 15.8% of the total supply to dedicated community members, DApp developers, liquidity providers and other key contributors. This initiative recognizes their pivotal role in shaping Berachain’s pre-launch ecosystem and turning the "fake chain" into reality. 

Eligible recipients span various categories, including testnet users, NFT holders and participants in ecosystem initiatives, such as the Request for Brobrosal (RFB) and Boyco. Notably, Binance HODLers will also receive a portion of the allocation, reflecting Berachain’s deepening ties with the broader crypto community. To check eligibility and claim airdrop rewards, users can visit the 

Looking to trade Berachain tokens? Bybit now offers the BERA/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

Berachain introduces a fundamental rethinking of DeFi liquidity through its novel Proof-of-Liquidity consensus. By weaving liquidity incentives into core network operations, the platform creates an ecosystem in which validators, protocols and users naturally collaborate toward sustainable growth.

With this architectural breakthrough, the Berachain network could potentially establish a new standard for Layer 1 platforms whereby sustainable liquidity becomes a catalyst for innovation, rather than a constraint.

berachain.png

Berachain (BERA): An EVM-Identical L1 Powered by Proof of Liquidity

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Crypto

Curious to find out more about the Ethereum Shanghai upgrade and whether ETH price could soar? Read this article for more information.

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After the momentous Ethereum Merge was flawlessly executed on Sep 15, 2022, the crypto market buzzed with enthusiasm as everyone wondered what was next for 

. Supposedly, Ethereum’s post Merge upgrade schedule was supposed to go along the lines of the Surge, Verge, Purge and Splurge. Recently, Ethereum’s core developers have decided to detour from their original roadmap plans.

Titled the Ethereum Shanghai upgrade, the plan is for developers to include multiple Ethereum Improvement Proposals (EIPs) that will minimize any delays before EIP-4844 launches. Curious about the EIPs that the upcoming Shanghai upgrade will include? Here’s how it’ll change Ethereum for the better in the long run.

Alongside EIP-4895 are a couple of other EIPs that are also planned to be implemented with the Ethereum Shanghai upgrade. These include:

Ethereum developers are currently planning a Q1 release, with the Shanghai Public Testnet expected to begin in February 2023. At the current rate of development, it seems that all is going according to plan as regular updates have stated March 2023 as the target release time frame.

Why Is Everyone Talking About the Ethereum Shanghai Upgrade?

If the Ethereum Shanghai upgrade is simply a precursor to the much more important Surge upgrade, the average investor might be wondering why there’s so much buzz with regard to its launch. To understand this, it’s key to first grasp what happened in the Ethereum community after the Merge was implemented.

Prior to the implementation of EIP-4895, participating in the staking of ETH was a one-way street. In order to secure an 

 staking reward, users had to lock up their ETH for a specific amount of time. As part of the 

 process, users had to minimally stake 32 ETH to participate. 

For users with less available capital, they could opt for 

 which streamlined the staking process and opened ETH staking to the masses. As staking ETH became easy and convenient for the average retail crypto investor, this led to the rise of popular staking platforms like Stakewise, Lido and Rocket Pool.

Ultimately, staking ETH was a calculated risk; stakers could earn extra yield at the downside of lowering their liquidity and exposing themselves to the dangers of counterparty risk. Despite not being able to withdraw ETH at the time, many investors took the Ethereum Foundation’s words to heart and trusted that in due time, they would be able to withdraw their deposited ETH from the Beacon Chain.

With the Merge’s implementation, the Foundation began to publicly display a rough timeline that laid out when withdrawing ETH from the Beacon Chain would become possible. Unfortunately, somewhere down the line, these dates got shifted as developers became ambiguous about Ethereum Shanghai upgrade’s exact launch date. This became the basis of the 

 surrounding Ethereum as the Ethereum Foundation was publicly denounced for this shady, non-transparent decision.

To the relief of many ETH bulls and investors, the developers seemed to have pulled through and stuck to their originally planned timeline. The experimental testnet Shandong went live in October 2022 and quelled many 

 fears as it successfully activated selected Shanghai-related EIPs without a hitch. With staked ETH levels approaching the 16 million mark, it’s safe to say staking ETH will only become more popular over time thanks to the withdrawal flexibility implemented by the Ethereum Shanghai upgrade.

Staking is a key issue here when discussing the movement of ETH price. With the implementation of the Shanghai network upgrade, our bullish argument would be that we can expect more users to HODL and stake their ETH as adoption rises. This would drive Ethereum’s staking ratio up as users who were previously fearful because they could not withdraw their ETH can now proceed to enjoy additional yield without the downside of lower liquidity. In this regard, we can certainly expect ETH to rise in price as large-scale institutions buy and stake their ETH to earn a respectable APY of about 5% without sacrificing liquidity.

From lowered gas fees to fewer failed transactions, the upcoming Ethereum Shanghai upgrade fixes various nagging issues that have constantly affected users and developers. By getting these fixes in before the big 

 implementation, the Foundation ensures minimal delays as they prepare themselves to ship the Surge update.

On the bearish side of things, the crypto market as a whole is still not out of the woods as big institutions continue to out themselves as victims of the 

 contagion. Macroeconomic factors are also bearish as US inflation still remains far from its 2% target and the Federal Reserve continues to hike interest rates. These factors might pressure original ETH stakers from December 2020 to sell their staked ETH and gain more liquidity so the rest of their portfolio can stay afloat during the crypto bear market. 

In anticipation of this, the Ethereum Foundation has set a hard limit of about 40,000 ETH that can be unlocked each day. This will hopefully ease the selling pressure and reduce short-term ETH volatility.

Ethereum Shanghai Network Upgrade Progress

Since testnet Shandong went live in late 2022, plenty of progress for the Ethereum Shanghai network upgrade has been made. These progress updates serve to show that the Ethereum Foundation is on track with its promised March network upgrade rollout.

Firstly, the team managed to copy the blockchain and create a shadow fork to begin the initial stages of testing the new EIPs in an isolated environment. The shadow fork proved a success as it immediately revealed minor glitches with Ethereum nodes that were making use of 

The latest progress update involves news of the latest Zhejiang testnet being launched. It serves to replace the Shandong testnet. This is because when Shandong was launched, it included several EIPs involving 

 (EOF) that will not be rolled out with the Shanghai network upgrade due to time and resource constraints. 

Thus, the newest Zhejiang testnet seeks to allow for staked ETH withdrawal testing in a more accurate environment that places the Ethereum network under a similar load. Ideally, withdrawals for staked ETH should go off without a hitch as they're exposed to simulated network attacks and stress tests. According to Ethereum Foundation developer Parithosh Jayanthi, Zhejiang 

 "a great opportunity for all tools to test out how they want to collect, display and use the withdrawal information.” 

 will be made available on Feb 1, 2023. Following this, the Shanghai+Capella testnet will be triggered six days later at epoch 1350. It's when users will be able to deposit ETH to validators on the testnet, practice Boneh–Lynn–Shacham (BLS) digital signature changes and exit without incurring any risk. On top of this, you'll also be able to convert 0x00 credentials to 0x01 and set a withdrawal address as you test partial and full withdrawals when exiting your validators.

How to Profit from the Ethereum Shanghai Upgrade

Thinking of how you can profit from the near-term volatility caused by Ethereum's Shanghai upgrade? Here are our thoughts on how you can long ETH in the event that ETH prices soar:

Optimal Bullish Strategy: Stop Market Leveraged Long Order

Firm believer of our bullish ETH thesis on how more long-term ETH investors might just buy and stake ETH because of the ability to finally withdraw their deposited ETH? Then consider our strategy of utilizing a stop market leveraged long order by buying the leveraged perpetual token 

To do so, simply sign up for a Bybit account before accessing the Spot Trading platform on Bybit and locating the ETH3L token. Once you’re in the trading interface, you’ll need to change your order type to 

. This type of market order essentially helps you extract maximum short-term gains while limiting your maximum loss thanks to the 

Before inputting your price levels, it’s key to check for areas of strong buying and selling. You can then place price levels based on perceived support and resistance levels. These can vary based on your personal risk appetite as some price levels appear to be stronger than others.

Once you’ve funded your Bybit Spot Trading wallet with the necessary funds, you may proceed to input the fields present in your ETH3L leveraged token stop market order and submit the order to place your trade.

 Difference between Entry - Exit before rebalancing

Ethereum Shanghai Upgrade: Can ETH Prices Soar Again?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards