ether surges more than 5% after software upgrade

Cryptocurrency ether surged more than 5% in early Asia trade on Friday as traders said a software upgrade this week ran relatively smoothly.

As the second-largest cryptocurrency by market capitalization, ether rose to as much as $2130. The number has grown by 80, the most since May 2022.

The upgrade, known as Shapella, took effect on Wednesday.

It boosted fear of a sell-off by allowing investors to redeem tokens deposited on the blockchain in exchange for interest. The withdrawal delays were evident on Thursday, but the apparent absence of wholesale sales encouraged buyers.

A lot of people were on the sideline during the upgrade, and now that it has gone off without a hitch, everyone is jumping in, said Matthew Dibb, chief investment officer at Astronaut Capital.

The price rose significantly within a few minutes after 0030 GMT, leading to a 10 month high of $30,923.

Liquidity has been quite low, so this would contribute to the sharpness of the move, Dibb said.

There was previously an expectation that there would be huge sell orders coming through, he said. This didn't happen at all, so every bid is moving the market.