Ethereum Shanghai Upgrade Unleashes $34 Billion in Staked ETH

April 13, 2023

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Ethereum Shanghai Upgrade Unleashes $34 Billion in Staked ETH

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Ether Shanghai Upgrade Goes live
$34 Billion in Ether Now Available for Withdrawal
$300 Million in Ether to be Fired into the Market

The much-anticipated event after the transition of Ethereum to proof of stake is the Shanghai upgrade, an event that has now unleashed $34 billion in staked Ether into the market. One leading question in the community is its possible impact on Ether. Is the institutional appetite for Ether about to grow?

The Shanghai upgrade otherwise known as Shapella was scheduled to happen on April 14, 2023, and as planned, it kicked off at 22:27 UTC and however completed at exactly 22:42 UTC, now users who staked their Ether can now withdraw their stakes which have been locked for the past two years.

Ethereum Shapella Upgrade was a STUNNING SUCCESS ????????????

WE MADE IT!
— Ethprofit.eth ???????? (@Ethprofit) April 12, 2023

ETH staking debuted back in 2020 during which users staked ETH with the network in order to validate on-chain transactions; in addition to their staked Ether, every participant was however rewarded with newly generated Ether.

In total, participants in the above-mentioned event deposited $34 billion with the network, funds, including their rewards, have not been available for withdrawal since the time, not even after the transition to the proof of stake consensus mechanism in September.

Those funds and rewards are now available for withdrawal after the just completed Shanghai upgrade.

Meanwhile, there have been concerns about the fate of the Ether market after Glassnode, a crypto data provider projected in a blog post that $300 million in Ether will be fired into the market.

“We project that only 100k ETH ($190M) of the total accumulated rewards will be withdrawn and sold. Furthermore, we expect to see twice as many validators exiting, but only a limited amount of stake will be released per day. We believe only a fraction of that amount, around 70k ETH ($133M), will actually become liquid,” Glassnode wrote in the blog post on Tuesday.

Looking at things, some crypto firms may unstake their staked Ether once it is available, for instance, Kraken due to the current regulatory crackdown in the US has shut down its staking operations, and according to a report, it has $1.2 million ETH and may unstake all, also, the insolvent crypto lender Celsius has about 158,000 Ether staked, it may as well sell its stake.

Furthermore, there is another reason why analysts opined that there may be wide selling pressure after the upgrade, during the launch of proof of stake, 32 ETH (maximum ETH which could be deposited by each participant) deposited by participants valued at $15,000, however, when we compare the price of the ETH back then to now, the same quantity of ETH is now worth about $60,000, which is why some participants may choose to sell their stake.

You may want to read about the Ethereum Shanghai upgrade and its possible effect on you, visit MyCryptoParadise blog now.

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