Binance AnnouPostnces – Shapella ETH withdrawal requests Can Take Weeks
Binance, a cryptocurrency exchange, said on Thursday, April 13, that Ethereum withdrawal requests may take several weeks to process. This statement comes just one day after the Shapella update became available on the Ethereum mainnet.
One of the most awaited events in the crypto sector for 2023 is Ethereum’s Shapella update, which now allows ETH validators to withdraw their locked cash. However, due to Ethereum network processing limits, Binance indicated that they should set a daily redemption quota for each user.
Binance, the world’s largest crypto exchange by trading volume, stated on its website on April 19 that its users will be able to redeem their frozen ETH holdings. The corporation also stated in Thursday’s notice that stringless requests may take anywhere from 15 days to several weeks to complete.
The length of time it takes to fulfill an ETH unstaking request is governed by the total number of ETH withdrawal requests made by staking players and the Ethereum network, according to the post. As previously stated, the processing restrictions of the Ethereum blockchain play a significant impact on the structure and timescale of Binance’s ETH exchanges.
Additionally, Binance stated that BETH tokens (Binance’s tokenized form of staking ETH) held in pending withdrawal requests will not be eligible for the ETH 2.0 staking incentive. Also, once a withdrawal request has been made, the user cannot cancel it.
There are currently more than 400,000 partial withdrawal requests and around 30,000 full withdrawal requests, according to data from quantified networks. However, it is worth mentioning that a large number of these withdrawals were forced, as US-based cryptocurrency exchange Kraken was forced to suspend its staking business after a $30 million settlement with the SEC.
The long-awaited Shapella update went live on the Ethereum mainnet on Wednesday, April 12, at 10:27 pm (UTC). The hard fork involves changes to both the network execution layer (Shanghai) and the consensus layer (Capella). Most importantly, it allows ETH validators to withdraw staking cash from the network.
There is concern that the validator’s new capacity to liquidate staked ETH will cause Ethereum’s value to collapse in anticipation of the renewal. However, contrary to popular belief, CryptoQuant predicts that the bearish pull after the increase will be small. And that’s what happened for the most part since Shapella premiered on Wednesday.
In reality, ETH surpassed $2,000 on April 13, and then repeatedly hit the $2,100 price barrier. As of this writing, ETH is trading at $2,090, up more than 10% in the last three days.