Ethereum Completes Shanghai Upgrade – BitcoinWorld
According to several update status pages, Ethereum successfully completed its update in Shanghai at 22:27 UTC on April 12.
The Shanghai update to Ethereum adds a significant new feature that allows validators who previously staked ETH on-chain to withdraw the token for the first time.
Upgrades, however, will not flood the market with ETH. Over the next 18 months, Ethereum will only allow 1,350 full validators to withdraw their shares per day. Since each validator stakes 32 ETH, the market can only accept 43,200 ETH ($83 million at current exchange rates) per day – and it is doubtful that all validators will withdraw their ETH.
According to Nansen data, 170,689 ETH and 4,799 validators are waiting for a full exit, accounting for about 1% of stakers and staking ETH.
However, a more pessimistic projection predicts that due to different partial withdrawal regulations, up to 1.54 million ETH can be withdrawn quickly after the upgrade. According to other estimates, the increase resulted in an unrealized loss of $5 billion.
Meanwhile, third-party betting platforms operate according to their own schedule. For example, Lido has stated that users will be allowed to make withdrawals in May.
Other enhancements include a basis for conditional or revocable payments, a feature that minimizes contract size and the perils of certain contracts, and an enhancement that cuts gas prices for developers.
Shanghai is the biggest Ethereum development in months, and the event has received widespread attention. ConsenSys has issued a series of warning NFTs, and its wallet project MetaMask has issued a user manual and issued a warning against fraud.
Despite the hype, prices vary minimally around the time of the event. ETH saw minor gains, gaining 0.2% in the hour and 1.3% in the 24 hours. Bitcoin, on the other hand, is up 0.0% and down 0.9% in the same time period.
Previously, Ethereum underwent a significant upgrade known as the Merger. In September 2022, Ethereum completed the switch from proof-of-work (commonly known as mining) to proof-of-stake.
Also, despite the fact that the Merger signals a major shift in staking, validators can deposit their stakes as early as November 2020. Cancun is the next big Ethereum name. This will include proto-danksharding, which seeks to increase scalability by lowering costs and shortening transaction times.