The #Shanghai upgrade timing has been confirmed by the #Ethereum Foundation team. The #Shapella hard fork will take place on April 12, 2023, at 22:27:35 UTC, at epoch 194048, based on the blog post. An epoch in Ethereum is a grouping of 32 network blocks.

The timing for the upgrade implementation to enable #ETH staking withdrawal was previously confirmed by Ethereum engineer Tim Beiko on March 14, when Shanghai was successfully tested on the most recent testnet, Goerli.

The majority of the crypto world formerly referred to this release as Shanghai. However, this renaming is intended to properly state the reason for each Ethereum network change. The Execution Layer and the Consensus Layer are the two sections of the Ethereum protocol.

The timing for the upgrade implementation to enable ETH staking withdrawal was previously confirmed by Ethereum engineer Tim Beiko on March 14, when Shanghai was successfully tested on the most recent testnet, Goerli.

The majority of the crypto world formerly referred to this release as Shanghai. However, this renaming is intended to properly state the reason for each Ethereum network change. The Execution Layer and the Consensus Layer are the two sections of the Ethereum protocol.

Prior to that, in August 2021, London implemented EIP-1559, which substituted a flat fee for the prior pricing auction process. The basic fee is burned, resulting in ETH's gradual depreciation even though validators still receive a block reward and tip.

This news is republished from https://coinaquarium.io/

According to recent comments by several prominent crypto analysts, Ethereum’s Shanghai (aka “Shapella”) upgrade, which allows for withdrawals of staked ether ($ETH ) previously locked, won’t significantly affect ETH’s price.

There have been concerns that the ability to withdraw funds could lead to an oversupply of ETH on the market, especially since there’s approximately $29 billion worth of ETH staked on the Ethereum network.

However, according to a recent CoinDesk report, the crypto analysts they spoke to said that the volume of #ETH outflows would be not as much as many people are expecting, and investors should not worry about it.

“I believe withdrawals and inflows from new stakers will be netted out,” says Nick Hotz, vice president of research at digital asset investment firm Arca. 

John Lo (aka “Omakase”), head of digital assets at investment firm Recharge Capital, believes that ETH stakers will not immediately head for the exit door as they will need time to “digest how withdrawals work.”

#crypto2023 research firm CryptoQuant argues that “there would be low selling pressure for ETH from staking withdrawals after the #Shanghai upgrade” because “a) the majority of the ETH staked (60% or 10.3 million) is currently in loss (comparing the current ETH price to the price at the moment each ETH was staked) and b) the average depositor of the largest staking pools is also at a loss currently.”

Furthermore, they note that “most of the ETH staked that is in profit was staked less than a year ago and most of it is only up between 20-30%, a return that in the past has not been consistent with large profit-taking events (selling).”

As #ETH staking deposits outnumbered withdrawals, the amount of staked ether increased to 19.55 million, a new record.

According to a report from blockchain analytics company Nansen, the Shanghai upgrade, which enabled staking redemptions for the first time, resulted in a “non-event” in terms of the selling pressure of ether (ETH), Ethereum’s native token.

Since the #Shanghai upgrade, which signalled Ethereum’s complete switch to a proof-of-stake blockchain, deposits of ETH have outpaced withdrawals, pushing the total amount of ETH staked to 19.55 million at press time, a new record. In light of this, the May 8 report noted “that the elimination of unstaking risks has thus far offset selling pressure from withdrawals.

Crypto bulls and bears engaged in extensive discussion about the market’s potential reaction following the upgrade in the weeks leading up to Shanghai. Since April 13 when Shanghai went live, the price of ETH has dropped by about 8% to $1,851, according to data from #CoinDesk. In the same time frame, the CoinDesk Market Index, which is used to gauge the overall performance of the digital asset market, has decreased by almost 10%.

The Nansen report states that “finally, withdrawals have been modest and have thus far been matched by inflows, signalling strong overall confidence from investors in the network and the asset itself.

While centralised exchanges (CEXs) like Kraken and #Coinbase received about 73% of the ETH withdrawn from staking, the majority of withdrawn ETH is actually CEXs withdrawing ETH to themselves.

“This means that the majority of ETH being sent to CEXs is not primarily for selling, but for the exchange’s internal operations,” says Nansen.

#Ethereum much-anticipated Shanghai hard fork, also known as Shapella, has been successfully completed, marking a significant milestone in the blockchain's multi-year transition to a full proof-of-stake network. The upgrade was triggered at 22:27 UTC and finalized about 15 minutes later, allowing users who have staked their ether (ETH) to secure and validate transactions on the blockchain to withdraw their holdings or redeem accrued rewards.

Proof-of-stake is a consensus mechanism where users stake cryptocurrency as a form of guarantee to help secure and confirm new data blocks. Ethereum had transitioned to this mechanism last year, but until now, users were unable to withdraw their staked ether or redeem rewards, a crucial feature of the new paradigm.

The successful implementation of the #Shanghai hard fork is a significant development for Ethereum, as it represents a major step towards making the blockchain more secure, efficient, and decentralized. However, there are still significant challenges ahead, particularly around scaling the network to make transactions faster and cheaper.

Vitalik Buterin, the co-founder of Ethereum, highlighted scaling as the next issue the blockchain will tackle after the successful implementation of the Shanghai hard fork. He emphasized that fixing scaling before the next bull run is essential to prevent users from paying high transaction fees, which could hinder the adoption of the platform.

The successful implementation of the Shanghai hard fork is also significant for validators who keep the blockchain running. Under the proof-of-stake consensus mechanism, validators have to stake at least 32 ETH by sending them to a smart contract where the funds are locked in. The more #ETH a validator stakes, the more likely they will be tasked with proposing a block of data transactions to be confirmed on the blockchain. When a validator proposes a block and it is approved by other validators, they receive an extra reward.

Not everyone has 32 ETH to stake, so liquid staking providers emerged as an alternative. These providers allow users to contribute any amount of ETH they want, and third-party providers will stake that ETH and run the validator on behalf of a collective of clients. The largest liquid staking provider, Lido, controls about 23% of all ETH staked, while some of the world's largest crypto exchanges, including Coinbase, Kraken, and #Binance control another 22% of staked ETH.

The successful implementation of the Shanghai hard fork represents a significant milestone for Ethereum, marking a crucial step towards a more secure, efficient, and decentralized blockchain. While there are still significant challenges ahead, particularly around scaling the network, the successful completion of the upgrade has boosted market sentiment and paved the way for further innovation and development in the world of decentralized finance.

#originalcontent

Staking Ethereum Reaches Historical High Following Successful Shanghai Upgrade

In recent news, Token Unlock has reported that the current annualized rate of return for staking Ethereum ($ETH ) has reached a historical high of 8.6%. This is thanks to the successful implementation of the Shanghai upgrade, which has seen a significant increase in the amount of $ETH deposited into ETH2.0 contracts.

What is the Shanghai Upgrade?

The Shanghai upgrade was a significant milestone for ETH2.0, introducing a range of new features and improvements to the network. One of these improvements includes the implementation of a "proof-of-stake" consensus mechanism, replacing the "proof-of-work" mechanism used in the original Ethereum network.

The Impact of the Shanghai Upgrade Since the implementation of the Shanghai upgrade, 3.4 million ETH has been deposited into ETH2.0 contracts, resulting in a net pledge of 734.92k $ETH , which is worth around $1.4 billion. This has pushed up the stETH APR to an all-time high of 8%, allowing ETH stakers to earn more rewards for their participation in the network.

Takeaways

The Shanghai upgrade has led to a historical high of 8.6% in the annualized rate of return for staking Ethereum.

3.4 million ETH has been deposited into ETH2.0 contracts, resulting in a net pledge of 734.92k $ETH .

The stETH APR has been pushed up to an all-time high of 8%.

Conclusion

The success of the Shanghai upgrade and the resulting increase in staking rewards is excellent news for ETH stakers. It also highlights the importance of keeping up with the latest developments and upgrades to the Ethereum network to maximize returns on staked ETH.

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