Ethereum recently wrapped up its final dress rehearsal, dubbed Shapella, on the Goerli testnet en route to its mainnet upgrade.
The Ethereum Shapella update is in progress for launch upon its successful activation on the Goerli testnet. This development is reportedly in the final phase before the update goes live on the mainnet. With the development of the Ethereum Shapella upgrade mainnet, participants can withdraw their Ethereum (ETH) from the protocol.
According to Ethereum developer Tim Beiko, the mainnet upgrade will take place next month after the Goerli hard fork. Beiko added that the hard fork is a necessary step for the Ethereum Shapella update to go live and bring various improvements.
Beiko revealed that the deposits are currently being processed, despite several validators yet to be updated. The Ethereum developer also noted the likely challenge regarding the lack of incentives. This challenge is because the testnet implements ETH which has no real value. Therefore, Beiko admits that this exercise might not appeal enough to testnet validators.
Regardless, Beiko remains more bullish on the mainnet due to the plausibility of increased user engagement. According to the Ethereum developer, users are more likely to run such nodes using fewer resources than on the mainnet. Beiko also previously referenced the fact that the change marked the first time people were able to submit changes.
Ethereum Shapella Anticipated Ahead of April Mainnet Update
Shapella is one of the most anticipated upgrades on the market and combines the Shanghai and Capella upgrade. Although Shanghai is the upgrade to the execution side where smart contracts exist, Capella focuses on the consensus layer where the validator actions are performed.
Ethereum Shanghai has been a major talking point in recent weeks. The network officially went live with the update last October with the Shandong testnet. Then, in mid-February, talk turned to how the Shanghai update might induce more price volatility than the September meltdown.
Comparing Ethereum’s Shanghai upgrade to the merger that facilitated last year’s proof-of-stake, Orbit Markets co-founder Yang Zhiming explained at the time:
“However, this time could be different. While the merger was a pure technological change with no direct economic impact, the Shanghai update will change the supply and demand of ETH in both the short and long term and is therefore capable of having a significant impact on the price of ETH. ETH”.
On the potentially higher price volatility of the upcoming Shanghai update, Zhiming noted:
“About $25 billion worth of ETH will be available for withdrawals and sales. As betting returns are expected to decline after the update, investors who previously gambled may stop betting and move on to other assets that offer better returns.”
The Orbits Market co-founder concluded that this development would cause “major selling pressures on the ETH price.”
Nonetheless, at the end of February, Ethereum developers successfully conducted a hard fork dress rehearsal in Shanghai at Sepolia. According to reports at the time, Sepolia successfully replicated the staked ETH withdrawals. The testnet also served as the penultimate dress rehearsal before the mainnet upgrade.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.