Ethereum completes Shanghai upgrade
According to various update status pages, Ethereum successfully completed the Shanghai upgrade on April 12th at 10:27pm UTC.
Validators can now withdraw staked ETH
Ethereum’s Shanghai upgrade introduces a significant new feature that allows validators who previously staked ETH on-chain to withdraw their tokens for the first time.
However, upgrades will not flood the market with ETH. Ethereum will only allow 1,350 full validators to withdraw their wagers each day for the next 18 months. Since each validator stakes 32 ETH, only 43,200 ETH (at current prices he is $83 million) can enter the market per day, making it unlikely that every validator will withdraw his ETH.
According to data from Nansen, 170,689 ETH awaiting full exit, and 4,799 validators awaiting full exit. This represents approximately 1% of ETH staked with stakers.
However, a more pessimistic estimate suggests that up to 1.54 million ETH could be withdrawn immediately after the upgrade due to different partial withdrawal rules. Other estimates suggest that the upgrade cost him $5 billion in unrealized losses.
Third-party staking platforms, on the other hand, operate on their own schedule. For example, Lido suggests that users will be able to initiate withdrawals around her May.
Shanghai also includes other improvements such as a conditional or cancellable payment basis, the ability to reduce contract sizes and certain contract risks, and improvements to lower gas prices for developers.
Shanghai is just one step on the ETH roadmap
Shanghai represents the most significant Ethereum development in months and the event has been widely observed. ConsenSys is a set of Commemorative NFTwhose wallet project MetaMask has provided a user guide and warned against fraud.
Despite expectations, the price fluctuated only slightly before and after the event.The price of ETH rose by 0.2% in 1 hour and by 1.3% in 24 hours, showing a slight increase. Bitcoin, by contrast, rose 0.0% and fell 0.9% over the same period.
Earlier, Ethereum underwent another significant upgrade called a merge. That upgrade took place in September 2022, when Ethereum completely transitioned from proof of work (also known as mining) to proof of stake.
The merge represented a complete change in staking, but validators were able to deposit stake as early as November 2020.
The next major Ethereum title is Cancun. It features proto-danksharding, a feature aimed at improving scalability by improving fees and transaction times.