Coinbase And Big Exchanges Start To Enable ETH Unstaking Feature
- Coinbase announced an ETH unstake following the Shanghai upgrade.
- Major exchanges are also starting to roll out, allowing users to unstake.
- Currently, the ETH price has not moved much with the above news.
The Ethereum network has just completed the Shanghai upgrade, bringing joy to the ETH community when the number of coins can be recovered after a long time of staking. Coinbase has informed users that they can now unstake ETH.
The upgrade, which went live on Wednesday at 10:27 p.m. UTC, allowed validators who have secured the network with over 18 million ETH to begin withdrawals. There are two types of withdrawals: partial withdrawals, which enable validators to receive their rewards while leaving at least 32 ETH benefits to continue earning rewards, and complete withdrawals, which remove everything from the network.
Coinbase and several exchanges have informed the community that it is now possible to unstake their locked ETH.
Moreover, some customers on the Kraken exchange are still unable to unstake due to network issues.
The Ethereum network has been striving to transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus method. PoS is a more energy-efficient and environmentally friendly method of network protection since it does not need miners to conduct complicated computations to verify transactions. Validators must instead “stake” a specific amount of coin in order to participate in the network’s consensus process.
The more ETH a validator invests, the more sway it has on network decision-making.
Despite the buildup to the event, the price of ETH fluctuated just a little. In an hour, the price of ETH grew by just 0.3%, while in 24 hours, it rose by a paltry 2.8%.
It is crucial to remember that this is not Ethereum’s first substantial update. With the Merge upgrade in September 2022, Ethereum successfully moved from proof-of-work (mining) to proof-of-stake.
At the time, the network had around 14 million ETH invested as it prepared to upgrade to proof of stake on September 15. By the time the Shanghai update went live on Wednesday, deposits had climbed to 18 million ETH.
Nevertheless, growth was not distributed evenly between staking pools. Lido, a decentralized liquid staking mechanism, was the only one to have its depositor share grow, albeit by one percentage point. According to Nansen, Coinbase, Kraken, and Binance, all reported a decrease in deposits.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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