Ethereum The Shapella update has been completed after a long wait. This upgrade is described as an important milestone for the ecosystem. The “proof-of-stake” consensus that the network transitioned to a while ago is complete with this update. Users will now be able to withdraw their staked assets.
The Shanghai upgrade was recently completed. Within half an hour after the upgrade was activated, approximately 285 withdrawals were made in 194,408 epochs for approximately 5,413 ETH (worth $10 million). According to Coin Metrics, 1.2 million ETH tokens, valued at over $2.3 billion at the current price, can be withdrawn in the next four to five days.
However, the detail to be noted is that 18 million ETH cannot be withdrawn at once. Ethereum will only allow 1,350 full validators to withdraw their shares every day for the next 18 months. As each validator deposits 32 ETH, no more than 43,200 ETH ($83 million) will be able to enter the market per day.
Is Ethereum Price Affected by Shanghai Update?
At the time the Shanghai hard fork was triggered Ethereum price remained largely constant. However, with the withdrawal mechanism going live, there may be short-term ETH price fluctuations in the near future. It’s important to note that while ETH has already just surpassed $1,900, the full impact of the upgrade on ETH price is yet to be seen.
In addition to enabling withdrawals, the Shanghai upgrade also includes other improvements such as a base for conditional or revocable payments, features to reduce contract size and certain contract risks, and improvements to lower gas fees for developers. It also brings a feature that allows validators who have previously staked on-chain ETH to withdraw these tokens for the first time.
Users are gearing up for Cancun, the next major update on the network. This update will feature proto-dank sharding, a feature that aims to increase scalability by improving fees and transaction times. While the Shanghai upgrade is a huge improvement for Ethereum, as founder Vitalik Buterin points out, there are still a lot of important things to be done, but these important things can be done safely at a slower pace.
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