The Shanghai update will allow validators on the network to withdraw staked funds by executing Ethereum Improvement Proposal (EIP) 4895.
The Shanghai Ethereum upgrade, also known as the Shapella hard fork, is expected to go live on April 12. With the next update, a drop in the price of ethereum (ETH) is expected.
At the time of writing, 15.56% of the total ETH supply, approximately 18.839 million coins, is staked on the blockchain, according to data provided by Staking Rewards. According to the data, ethereum’s staking market capitalization is $36.7 billion, leading Proof-of-Stake (PoS) networks.
According to Staking Rewards, the validator’s total revenue on the Ethereum network increased by 21% over the past month and currently stands at $2.34 billion. On the other hand, the number of Ethereum validators dropped from 564,018 on April 9 to 562,745 at the time of writing.
Market intelligence platform IntoTheBlock expects a drop in the ETH price as validators will be able to withdraw their funds from the network with the Shanghai update. However, it is “highly likely” that the amount of ethereum staked will increase after EIP-4895.
According to the market analysis platform, the Ethereum network could see a “25%-30%” increase in participation “within a year, making the Ethereum network more secure and decreasing the amount of ETH supply. available to sell.”
Ethereum is up 3.2% in the last 24 hours and is trading at $1,920 at the time of writing.
