Data of token unlocks showed that validators had withdrawn 84,000 Ethereum at press time.
This was made possible by the Shanghai update, which went live on April 12 around 22:30 UTC, allowing ETH participants to re-escrow their tokens.
Limited Ethereum Withdrawals
Direct participation in the Beacon Chain contract required individuals to become network validators and delegate a minimum balance of 32 ETH. Shanghai allowed people to unvalidate, exit the network, and unlock their participation balance plus accumulated rewards.
Those who have delegated more than 32 ETH, and wish to unlock some tokens, can opt for a partial withdrawal and continue to act as validators for the network.
There was a lot of speculation surrounding the update. Some anticipated a wave of withdrawals, leading to a possible drop in the spot price. Meanwhile, others believed that enabling withdrawals would encourage more ETH holders to stake their tokens.
By Ethereum FAQTo manage outflows, the project has adopted an outbound queue system, with a location determined by the number of tokens requested for withdrawal.
“The output queue depends on the size of the validator established in the network. This limit exists to regulate the rate of exit and entry into the set of beacon chain validators..”
An initial analysis of the numbers shows that the Shanghai update had a negligible impact on the market.
The numbers
Token Unlocks showed a 2.7% drop in deposits to 17.52 million ETH, with 84,000 ETH withdrawn at press time. This figure far exceeded post-Shanghai deposits, resulting in a net loss of 78,000 tokens. However, the total pending withdrawals currently stands at 825,000 ETH.
The chart below shows that approximately 10,000 tokens are processed every hour. Interestingly, most of the withdrawals are attributed to the “reward” rather than the “main”, indicating that most people have chosen partial withdrawals to capitalize on winnings from betting, but still plan to continue as validators.
Ethereum price grew 3.9% to $1944 in the last 24 hours. This performance was enough to lead the top 10 cryptocurrencies. Polygon was in second place, up 2.8% over the same period.
The post-Ethereum Shanghai unlock had minimal market impact: 84k ETH withdrawn appeared first on CryptoSlate.
