Nearly $2 billion worth of Ethereum (ETH) is set to be unstaked after the top smart contract platform’s Shapella update went live last week. In a new report, crypto analytics platform IntoTheBlock finds that 868,631 of staked ETH, worth more than $1.8 billion at time of writing, are currently in queue waiting to be withdrawn. […]
The post Over $1,800,000,000 in Ethereum Waiting To Be Unstaked Following Shapella Update: IntoTheBlock appeared first on The Daily Hodl.
Hundreds of millions of dollars worth of Ethereum (ETH) has been unstaked in the last 24 hours as the smart contract platform launches its new Shapella upgrade. New data from crypto analytics platform Nansen reveals that over 89,000 ETH tokens, worth over $170,000,000 at time of writing, have been withdrawn from staking protocols during the […]
The post $165,000,000 in Ethereum Unstaked in Just 24 Hours As Shapella Upgrade Goes Live appeared first on The Daily Hodl.
After months of delays, Ethereum validators can finally withdraw their staked Ether and rewards from the Ethereum Mainnet.
The Shapella hard fork has officially been executed on the Ethereum Mainnet— meaning that Ethereum validators can finally withdraw their staked Ether (ETH) from the Beacon Chain.
The long-awaited upgrade took effect at 10:27 PM UTC on April 12.
Through Ethereum Investment Proposal EIP-4895, staked ETH was pushed from the Beacon Chain to the Ethereum Virtual Machine (EVM) otherwise known as the execution layer, making withdrawals possible.
It is the most significant upgrade since The Merge on Sept. 15 and it moves Ethereum one step closer towards a fully functional proof-of-stake system.
Ethereum proof-of-stake chain has upgraded to Shapella. Withdrawal is now enabled
— terence.eth (@terencechain) April 12, 2023
This closes the loop of the original beacon chain design. Validator can deposit -> withdrawal.
The hard fork allows for partial and full withdrawals of staked ETH, which can theoretically unlock 18.1 million ETH when Shapella is forked, currently equating to over $34.8 billion.
However several mechanisms are in place to prevent a flood of the ETH supply from hitting the market, according to the Ethereum Foundation.
The Ethereum blockchain is set to undergo its next major update since the network switched from proof-of-work to proof-of-stake through The Merge. The upcoming upgrade, dubbed “Shapella,” which combines the Shanghai and Capella validator changes, is expected to take place on April 12, 2023. While most users will not be affected by the change, the […]
Ether has broken the $1,900 resistance level for the first time in months and is currently sitting above $1,911.
Ether (ETH) has breached $1,900 for the first time in over seven months, a week before staking withdrawals are enabled in the next major update for the second-largest cryptocurrency by market capitalization.
CoinMarketCap data shows the last time Ether was over $1,900 was on Aug. 16, 2022, amid a broader crypto sell-off at a time when the United States Federal Reserve was hiking the Federal Funds rate at a record pace to combat inflation.
The Ethereum Shanghai hard fork, set to occur on April 12, will implement EIP-4895 — allowing validators and stakers to withdraw staked ETH from the beacon chain — in addition to other EIPs which aim to help increase transaction speeds while reducing transaction costs.
Alright, let's talk about the Ethereum Shanghai Upgrade! It's a hard fork scheduled to occur in March 2023. Stakers and validators will be able to withdraw staked ETH from the Beacon Chain. Approximately 16 million staked ETH will be available for withdrawal.
— Branimir Stojanović (@branelost) April 4, 2023
The recent price increase could be driven by expectations that the Fed may ease up on its quantitative tightening efforts as rate increases cause cracks in the global banking industry, or by increased demand for Ether given that staking is slated to be more flexible.
While Bitcoin (BTC) has also recorded gains in recent days, ETH/BTC — a trading pair comparing the price of ETH to BTC — has increased by nearly 3% in the last week according to TradingView, suggesting both factors may be contributing to Ether’s price jump.
$ETH / $BTC
— K A L E O (@CryptoKaleo) April 5, 2023
Solid bounce for ETH relative to BTC the past several days
tbh though, still just expect this as nothing more than a swing play opportunity and profits should rotate back into BTC before $30K breaks and the ratio trend reverses bearish again pic.twitter.com/MOe1GlibaX
While Shanghai refers to the fork on the execution layer client side, Capella is the upgrade name on the consensus layer client side and is set to be executed shortly after Shanghai on April 12.
The execution layer is where all the smart contracts and protocol rules are, while the consensus layer ensures that all network validators follow these rules.
Related: 3 reasons why Ethereum price can reach $3K in Q2
It is worth noting that the price of ETH dropped sharply following the execution of The Merge on Sept. 15, 2022, where it lost just under a quarter of its value in one week according to CoinMarketCap.
Despite some analysts and traders suggesting the unlocking of staked Ether will create sell pressure, what will occur following the Shanghai and Capella updates is currently speculation.
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As Ethereum’s Shanghai upgrade approaches next month, the network’s Sepolia testnet has successfully upgraded, simulating the scheduled hard fork.
The Ethereum blockchain’s Sepolia testnet has undergone a successful upgrade that simulates the upcoming Shanghai hard fork expected to take place on mainnet in March.
The “Shapella” upgrade, which combines the names of the upcoming Shanghai and Capella hard forks, was successfully implemented on the testnet on Feb. 28.
Sepolia testnet has successfully upgraded to Shapella!
— terence.eth (@terencechain) February 28, 2023
Some of the Prsym validators are offline due to the old geth version. They will come online in the next 10 mins!
Next stop: Goerli pic.twitter.com/pb43Gq7w9C
Shanghai is the fork’s name on the execution layer client side and Capella is the upgrade name on the consensus layer client side. One of the major changes enables validators to withdraw their staked Ether (stETH) from the Beacon Chain back to the execution layer.
Related: Lido Finance activates staking rate limit after more than 150,000 ETH staked
Validators needed to stake 32 Ether (ETH) to validate on the Ethereum blockchain. They will now be able to withdraw rewards in excess of 32 ETH and be permitted to keep validating while those who wish to fully withdraw can take all 32 ETH plus rewards and cease validating.
The next step before the Shanghai fork goes live on the mainnet will be to release the upgrade on the Ethereum Goerli testnet, which is expected to commence in March.
Ethereum core developers plan to activate the “Shapella” transition through the Zhejiang public testnet on Feb. 7, 2023, according to Tim Beiko of the Ethereum Foundation. If successful, Beiko said the Sepolia testnet could follow two days later, followed by the Goerli testnet. He noted that the testnet has a faucet, block explorer, and staking […]