NEWSLETTER
Ethereum developers said that the next Shanghai update, scheduled for March, would add functionality to withdraw staked ETH, according to Bloomberg News.
The confirmation brings a welcome relief to stakeholders and interested parties, who, following the ongoing speculation about indefinite token lockup, now see the light at the end of the tunnel.
Since the Beacon Chain went live in November 2020, the Ethereum deposited in the staking contract has accumulated at a steady rate. Now, 15.9 million ETH, valued at approximately $19.8 billion, has been deposited, representing 13.2% of the supply.
What happens now with Ethereum?
Messari data showed that Ethereum has the lowest participation rate of any major proof-of-stake (PoS) chain. The participation rate for other major PoS chains ranged from 46% to as high as 90% for BNB.
Twitter user @MStiive wait as March approaches”a radical increase” on Ethereum staking will occur, pushing the staking ratio higher and more in line with other chains.
However, others speculate that allowing withdrawals would trigger a mass exodus from ETH, adding to selling pressure in an already fragile market still reeling from last year’s scandals.
What to expect from Shanghai
Carry off is the next major upgrade for the Ethereum network, following the merger in September 2022. Highlights of what you can expect include:
- Gas fee reduction for Layer 2 solutions, which could potentially make Ethereum faster and cheaper to use after Shanghai.
- Efficiencies in data storage and access, such as the removal of historical block hash data in contracts.
- Withdrawal of staked ETH, contract lock on staked tokens to be removed to allow removal.
Despite the bearish narrative surrounding Shanghai from some quarters, @TheEliteCrypto believes that the upgrade will be a bullish factor for the second largest cryptocurrency. Perhaps even sparking a return to pre-FTX price levels.
“Exciting thoughts on the potential for a Shanghai upgrade to fuel the uptrend for #ETH. Who knows, maybe we’ll even see it hit 1.6K! Good morning family!“
