The cryptocurrency world is abuzz with the successful launch of Ethereum's Shapella network upgrade. The upgrade has made the network more sustainable and unlocked the long-awaited ability for initial Ethereum stakers to withdraw their ETH.
Ethereum stakers now find themselves at a crossroads – do they withdraw their rewards and the initial 32 ETH they have staked, or do they stand pat and continue securing the network?
While some predicted a flood of ETH hitting the open market, early indications are that the majority of stakers are actually choosing to re-stake their earnings — boosting overall staking participation and confidence in the Ethereum network.
As the largest proof-of-stake (‘PoS’) network by total capitalization, 15.5% of total Ethereum is being staked, representing a total of $35.8b in value. By comparison, other leading PoS blockchains such as Cardano, Solana, and Avalanche have over 60% of their circulating tokens being staked. With Ethereum being de-risked with Shapella, most pundits expect to see a steady increase in Ethereum staking participation in the coming months.
The Shapella upgrade marks another significant milestone for Ethereum and the broader digital asset ecosystem. It also is the final piece for the network’s switch to proof-of-stake from proof-of-work. While the skeptics will continue to doubt Ethereum’s path to global scale, Shapella shows the network is still dunking on its haters.
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The 'Shapella' Show
Ethereum’s Shanghai upgrade is complete, starting new era of staking withdrawals - Ethereum’s Shanghai hard fork, also referred to as “Shapella,” has been finalized, enabling withdrawals for users who have “staked” their ether (ETH) to secure and validate transactions on the blockchain. The much anticipated hard fork – essentially upgrading the blockchain by splitting off a new one – has been characterized by members of the Ethereum community as a historic milestone, completing its multi-year transition to a full proof-of-stake network. Read more
Crypto’s Ethereum Network completes key software upgrade without a hitch - Ether rallied past $2,000 for the first time since August after a widely anticipated software upgrade to the most commercially important blockchain went according to plan, and as worries of initial rapid outflows proved unfounded. The so-called Shanghai, or Shapella, update enables investors to queue up to withdraw Ether coins they had pledged to help operate the Ethereum network in return for rewards, a process called staking. And so far, 96% of withdrawal volume has been from users withdrawing their rewards instead of their entire stakes. Read more
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