Ethereum has successfully completed its highly anticipated Shapella update, overcoming a significant hurdle this year. Named after Shanghai’s network execution layer and Capella’s consensus, the update has caused significant price fluctuations for Ethereum (ETH), especially recently.
With the Shapella update, two withdrawal options for staked ETH were introduced: partial and complete. Partial withdrawals transfer ETH to validators automatically, ensuring their balance remains at the requisite 32 ETH, but total withdrawals involve shutting the validator and removing all submitted money. As the update approached, market volatility and ETH prices increased, with the token hitting the top of the most traded cryptocurrencies before succumbing to selling pressure.
Over 77,000 ETH Withdrawn
Following the Ethereum update, over 77,000 ETH were withdrawn, causing the amount of staked ETH to fall below 18 million and the number of validators to drop to 562,497. After the Shapella update, around $1.34 billion in ether is scheduled to be removed, with 695,750 ether now awaiting withdrawal. Over 99,000 ether (worth $190 million) is expected to be withdrawn in the next 10 hours, totaling $380 million in ether withdrawals since the Shapella upgrade.
The upgrade was released on the mainnet at block height 6209536.
Shapella is a watershed moment for Ethereum, coming after the deployment of EIP-1559 and The Merge. Withdrawals are now enabled, and the network has completely migrated to a proof-of-stake consensus process.
The price of ether is now hovering around $1,950 and is untouched by the Shapella hard fork for the time being. As predicted, no significant selling pressure has yet developed, and the price trend appears to be upward.
In conclusion, the successful completion of Ethereum’s Shapella update has increased market volatility and resulted in significant ETH withdrawals, showcasing the impact of major network updates on the cryptocurrency landscape.