THE fork Shapella of Ethereum, scheduled for April 12, 2023, will mark the network’s full transition to Proof of Stake and could result in mass withdrawals of ETH coins.
Site data beaconcha.in show that more than 18 million ETH worth more than $34 billion have been staked on the network since the commissioning of the Beacon Chain of the Ethereum protocol in December 2020.
The data ofIntoTheBlock show that after the update, between $80 and $100 million worth of ETH could be withdrawn daily, with four to five day processing times for partial withdrawals. If these estimates hold true, it would take more than 100 days for a third of ETH staked are withdrawn.
THE fork Shapella will allow validators to withdraw the ethers (ETH) staked (staked) since the launch of the Beacon Chain in December 2020. staking as Lido And Coinbase have set different timelines for processing withdrawal requests.
Lidowhich holds approximately 31% of staked ether (ETH), will add two weeks of “safety margin” before allowing its users to recover their ETH, while Coinbase plans to make withdrawals available 24 hours after update.
Experts have differing opinions on the potential impact of these massive withdrawals
Some believe that the arrival of staked ETH on the market could exert a selling pressure on the price of ETH, while others believe that the majority of ETH withdrawn will go to other liquid staking projects like Rocketpool to improve decentralization.
A few optimistic investors also believe that the Shapella fork will reassure institutional investorsbringing new liquidity to the market to stake ETH, generate revenue and secure the blockchain Ethereum.
The recent drop in the price of ETH could also encourage some beneficiaries to keep their ether unlocked rather than sell it, indeed many investors were able to buy their first ether during the bullrun of 2021, sometimes at a price higher than the price current 1900 dollars.
Ethereum staking deposits down
THE staking deposits Ethereum have fallen slightly recently due to increased regulatory pressure and upgrading shapella scheduled for April 12. Glassnode, an analytics provider on blockchainreported that this decline is due to these two factors.
The liquid staking platform Lido gained market share against large centralized exchanges such as Coinbase, Binance And kraken. Lido currently accounts for almost a third of the total amount of ETH staked, around $11 billion out of the 5.9 million ETH on the platform.
After the Shapella upgrade, the 18 million ETH staked will be gradually released for removal in the weeks and months that follow.
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