#484
The ‘Shapella’ Show
Published:
Apr 17, 2023
Author:
Cindy Grazer
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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
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