Ethereum’s Shanghai Brings New Potential With 1.3 Million ETHs Unstaked So Far
- Ethereum’s Shanghai upgrade is giving positive signals with no spike in ETH withdrawal.
- This could facilitate other features to grow along with reduced fees and increased transaction speeds.
The much-anticipated Ethereum’s Shanghai blockchain upgrade, also known as “Shapella” by diehards, is expected to be one of those where-were-you-when moments that occur from time to time in the world of cryptocurrencies. Thus far, the total amount of unspent ETH has topped 1.3 million.
Token Unlock data shows that since the completion of the upgrade of Ethereum Shanghai, about 1.37 million ETHs have been unstaked, about 950,000 ETHs have been newly deposited into pledges, and the net withdrawal of about 430,000 ETHs. In addition, nearly 870,000 ETH are currently pending withdrawal, and over 150,00 ETHs have been withdrawal.
Early indications indicate that Ethereum’s flawless Shanghai upgrade has piqued the curiosity of institutional investors in staking.
From April 12, Ethereum’s widely awaited technology update permitted withdrawals of about 18 million tokens worth $35 billion that had previously been tied up in staking contracts.
After the upgrading, the price of ETH surged to $2,100, its highest level in 11 months, confounding prior fears that the unlocking would result in severe selling pressure and a price collapse. The currency has lately fallen below $1,850, coinciding with a general slump in the crypto market.
At its core, the Shanghai Upgrade is designed to improve the performance and scalability of the Ethereum network. This upgrade will introduce a number of key changes, including new features such as a new gas model and support for stateless Ethereum clients. This is expected to help improve the overall speed and efficiency of the Ethereum blockchain, which could lead to faster transaction times and lower user fees.
Enabling withdrawals also reduces the liquidity risk associated with locking up ETH for staking, which had previously deterred some investors. This makes it possible for existing ETH staking mechanisms like Liquid Staking Derivatives (LSD) to attract more users.
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