The Ethereum mainnet successfully completed the Shapella upgrade on April 12, marking a significant milestone for the blockchain network. The upgrade paves the way for Ethereum validators to withdraw their staked Ether on the Beacon Chain. As of now, validators have withdrawn a total of 126,955.07 ETH, with 248,043 out of the 559,549 active validators, or about 44%, having the ability to request a partial or full withdrawal. Majority of the withdrawals currently vary between 2.8 to 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 another reason why validators are not withdrawing the whole amount, and the ETH price is currently trading below $2,000 with the price acting as key resistance.
Several major crypto exchanges have announced their support for ETH unstaking, with some exchanges already processing withdrawal requests. Coinbase, the world’s first publicly listed crypto exchange, announced that ETH unstaking is now live on their platform. BitGo, a leading custodian, upgraded to Shapella successfully, and ETH withdrawals are now live on the platform. Kraken began withdrawing validators for their United States customers on April 11 and processing withdrawals of ETH after the completion of the Shapella upgrade. The exchange’s early withdrawal of validators was caused by the U.S. Securities and Exchange Commission action brought against Kraken’s Ethereum staking product back in February.
Jonathon Miller, Kraken Australia Managing Director, told reporters that even though such a high quantity of ETH unstaking might cause some price volatility, it will bring users to the ecosystem in the long run. He explained that “Whilst this unlocking event may create conditions for an exodus from the staking protocol, 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.”
Binance, the leading crypto exchange by trading volume, announced its support for the Shappela upgrade and said it would start the withdrawal processing requests from April 19. The exchange also added that the withdrawal request could 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 said the ETH withdrawal details would be shared soon.
The completion of the Shapella upgrade is a significant milestone for the Ethereum community as it paves the way for more users to join the platform, staking their ETH and earning rewards. This new upgrade accelerates the potential adoption of the Ethereum blockchain and creates a more secure and scalable ecosystem for developers and users alike. With the upgrade now in effect, the Ethereum community can look forward to more opportunities for growth and development, ensuring the continued success of the platform.
