Ethereum's Shapella Upgrade Complete
Jessie A Ellis Apr 14, 2023 08:45
Ethereum's Shapella upgrade has been successfully completed, allowing validators to withdraw their staked Ether on the Beacon chain. Over 44% of active validators have the ability to request partial or full withdrawals, with most withdrawals being for staking rewards. Major exchanges have announced their support for ETH unstaking, with several already processing withdrawal requests.
The Ethereum mainnet has completed its Shapella upgrade, allowing validators to finally withdraw their staked Ether on the Beacon chain. This successful execution is a significant step for Ethereum, as it enables validators to access their staked funds and provides an opportunity for ETH holders to move assets into Ethereum staking pools.
At the time of writing, a total of 126,955.07 ETH had been withdrawn by validators. Of the 559,549 active validators, about 44% of them, or 248,043 validators, have the ability to request a partial or full withdrawal. The majority of withdrawals currently vary between 2.8-3.2 ETH, indicating that most validators are only withdrawing their staking rewards.
The average price of staked ETH is $3,149, which could be a reason why validators are not withdrawing the whole amount. Additionally, the ETH price is currently trading just under $2,000, with the price acting as a key resistance. However, major crypto exchanges have announced their support for ETH unstaking, with several already processing withdrawal requests.
Coinbase, the world's first publicly listed crypto exchange, has announced that ETH unstaking is now live on their platform. BitGo's Chief Operating Officer Chen Fang also took to Twitter to announce that the exchange has successfully upgraded to Shapella, and ETH withdrawals are now live on the platform.
Kraken, on the other hand, began withdrawing validators for their United States customers on April 11th and began processing withdrawals of ETH after the completion of the Shapella upgrade. This early withdrawal of validators by the exchange was caused by the U.S. Securities and Exchange Commission action brought against Kraken's Ethereum staking product back in February.
Binance, the leading crypto exchange by trading volume, has announced its support for the Shapella upgrade and will begin processing withdrawal requests starting from April 19th. The exchange has also added that the withdrawal request can take up to 15 days to process due to processing limitations.
Bitfinex, one of the leading crypto exchanges, congratulated the Ethereum community on the successful upgrade and announced that the ETH withdrawal details would be shared soon.
This unlocking event may create conditions for an exodus from the staking protocol, but the ability to freely stake and unstake in accordance with bonding periods specified by the protocol could equally attract many ETH holders. The move to unstaking could see a massive movement of assets into Ethereum staking pools.
Overall, the successful completion of the Shapella upgrade is a significant milestone for Ethereum, as it provides validators and ETH holders the opportunity to access their staked funds and move assets into Ethereum staking pools. With major exchanges supporting ETH unstaking and processing withdrawal requests, it will be interesting to see how many ETH holders take advantage of this opportunity in the coming days and weeks.
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