Main navigation

Ethereum (ETH) Shanghai Upgrade Sparks Market Attention Ahead of Launch

Fri, 04/07/2023 - 15:25
article image
Tomiwabold Olajide
Upgrade is expected to occur at epoch 194,048 at about 10:27 p.m. (UTC) on April 12
Ethereum (ETH) Shanghai Upgrade Sparks Market Attention Ahead of Launch
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Ethereum's Shapella hard fork, or Shanghai upgrade, slated to happen in the next five days or on April 12, will let users withdraw their staked ETH. The upgrade is expected to occur at epoch 194,048 at about 10:27 p.m. (UTC) on April 12.

According to Etherscan data, since the Beacon Chain went live in December 2020, more than 18 million ETH (18,096,791) worth $33,590,177,959 have been staked on the network. After the upgrade, the whole balance cannot be unstaked right away, but 1.1 million coins that were acquired as staking rewards can.

Binance to Temporarily Suspend Ethereum (ETH) Deposits on This Date

Ethereum stakers may have to join queues, which could vary depending on where their stakes are held. For instance, Lido, which now holds almost a third of the staked Ether, expects to enable withdrawals in May.

Because Ethereum has put constraints in place to prevent too many users from withdrawing at once and making the system vulnerable to attack, it might take months for ETH holders to withdraw their coins.

Why market is paying attention

The number of people who wish to withdraw their Ether once it is unlocked is unknown, but at least initially, withdrawal demand is anticipated to surpass new staking deposits on Ethereum.

Some commentators estimate that the subsequent boost in selling pressure could be worth a billion dollars. However, in the long run, the ability to withdraw staked tokens will probably make ETH staking more alluring as it will lower the risk for the individuals involved.

Ethereum (ETH) Jumps 6% as Shanghai Mainnet Upgrade Date Is Announced

Investors anticipate volatility in the price of so-called liquid-staking tokens, which represent staked Ether. Although there is the potential for glitches once Shanghai goes live, Ethereum developers have a history of making software changes without any major issues.

Since the Merge, regulators have been keeping a close eye on Ether, notably the U.S. Securities and Exchange Commission, which has claimed that some businesses that promise returns via staking coins are unregistered securities offerings. By allowing staked Ether to be unlocked, the Shanghai upgrade may lead to increased scrutiny.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.