Categories: FintTechMenafn

Ethereum Ready To Turn On Staked ETH Withdrawals In 2 Days

Summary:

  • The Shanghai-Capella upgrade scheduled for April 12 should unlock over $30 billion in staked ETH on Ethereum’s beacon chain.
  • Clients are advised to upgrade their nodes ahead of Shapella’s arrival, core developer Tim Beiko said.
  • It’s unclear if selling pressure might increase after the unlock enables withdrawals for over 16 million stETH.

Ethereum’s highly anticipated Shanghai upgrade is scheduled for epoch 194048 at around 11 pm UTC on April 12, barely two days away at press time.

https://twitter.com/TimBeiko/status/1645440012358492162?ref_src=twsrc%5Etfw” rel=”nofollow noopener

ETH proponents and core developers have angled the Shanghai-Capella update as another watershed moment for crypto’s second-largest blockchain after Bitcoin (BTC). The network already successfully implemented the Merge, Ethereum’s switch from a proof-of-work consensus model to proof-of-stake which happened on September 15, 2022.

Shapella, a mix of the Shanghai and Capella upgrades, will unlock over 16 million ETH deposited in the chain’s staking contract since December 2020, or so developers say. The massive staked ETH fortune is worth nearly $30 billion at current prices. ETH was up 1.30% and traded at $1860 on Monday.

ETH/USDT by TradingView

However, withdrawing stETH was impossible and required another technological upgrade – Shapella.

The tokens also make up over 13% of ETH’s total token supply. Entities have locked ETH a staggering amount of ETH since 2020 to secure their place as Ethereum validators – the people who help manage ETH’s network by authenticating transactions and securing the chain.

Ethereum Validators And Centralization

These validators became a crucial part of Ethereum after the Merge, effectively replacing miners who operate similar duties in a PoW blockchain. While the growing number of validators beyond 500,000 and stETH exceeding 16 million tokens could indicate increased interest in ETH, the coming unlock also raises concerns of sell pressure in the market.

The concentration of stETH in the hands of a few entities also might pose centralization concerns. Indeed, Nansen data shows that services like Lido Finance, Coinbase, Kraken, and Binance are the top five staked ETH depositors.

Top stETH Depositors by Nansen
Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

Recent Posts

XRP Surges 31.9% in 24 hours After Gensler Announces Exit

The price of the XRP Ledger blockchain’s native token (XRP) has been rising over the…

7 hours ago

Momcozy Honored with Multiple International Awards

Momcozy, a global leader in maternal and infant care, has continued to impress with its…

10 hours ago

Local SEO Tampa Enhances Digital Marketing Services for Tampa Bay Small Businesses

Local SEO Tampa (https://localseotampa.com/), a trusted digital marketing firm in Florida since 2007, proudly expands…

10 hours ago

VAIOT Launches Legal Torch to Democratize Access to Affordable Legal Support

Birkirkara, Malta, 22nd November 2024, ZEX PR WIRE, VAIOT, a company providing AI-driven Legal Tech…

14 hours ago

Classic Watches: A Timeless Source in the Data-Driven Era and Why Dedondi is Leading the Way

Dubai, UAE, 22nd November 2024, ZEX PR WIRE, In today’s data-driven world, information has become…

14 hours ago

DexWin, World’s First Licensed Decentralized Crypto Bookmaker, Introduces Gasless Betting on Polygon

Nicosia, Cyprus, 22nd November 2024, ZEX PR WIRE, The DexWin platform (the first licensed decentralized…

16 hours ago