Ethereum(ETH) completes the Shanghai upgrade
Ethereum’s Shanghai upgrade was successfully completed at 10:27 UTC on April 12, according to various update status pages.
Validators can now withdraw staked ETH
Ethereum Shanghai adds a new feature allowing validators to withdraw tokens that they staked previously on-chain. The upgrade, however, will not flood the market with ETH.
Over the next 18 months, Ethereum will only allow 1,350 full validators to withdraw their stake per day. Because each validator stakes 32 ETH, the market can only accept 43,200 ETH ($83 million at current prices) per day and it is unlikely that all validators will withdraw their ETH.
Furthermore, third-party staking platforms work on their own timetable. For example, Lido has stated that users will be able to begin withdrawals in May. Other enhancements in Shanghai include the ability to accept conditional or cancellable payments, features that reduce contract size and certain contract risks, and enhancements that reduce gas fees for developers.
The Shanghai upgrade occurred concurrently with another upgrade known as “Capella,” and the entire upgrade is sometimes referred to as “Shapella.” Shanghai is only one stop on the ETH journey. The event in Shanghai has garnered widespread attention as the most significant Ethereum development in months.
ConsenSys has issued a series of commemorative NFTs, and its wallet project MetaMask has issued a user guide and issued a warning about scams. Despite the hype, prices fluctuated only slightly around the event’s time. ETH experienced minor gains, rising 0.2% in one hour and 1.3% in 24 hours. Bitcoin, on the other hand, was up 0.0% and down 0.9% during the same time period.
Previously, Ethereum underwent a significant upgrade known as the Merge. The transition from proof-of-work (also known as mining) to proof-of-stake was completed in September 2022. Furthermore, validators could deposit their stakes as early as November 2020, despite the fact that the Merge represented a complete change in staking. Cancun is the name of the next major Ethereum. It will include proto-dank sharding, which aims to improve scalability by lowering fees and shortening transaction times.
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