Ethereum’s Shapella Upgrade Boosts Deposit Activity and Reduces Staking Risk
Ethereum’s latest upgrade, the Shanghai/Capella (Shapella), has gone live on April 12, 2023. According to a recent tweet by Kunal Goel, a researcher at Messari, the upgrade has enabled ETH withdrawals from the staking contract, resulting in a net outflow of 320,000 ETH. However, the upgrade has also boosted deposit activity, reducing the risk of staking.
The Ethereum Foundation and Messari have been keeping a close eye on the impact of the Shapella upgrade, and the data shows that centralized exchanges like Kraken, Binance, and Coinbase accounted for 82% of full withdrawals. Kraken, which has been impacted by regulations, was responsible for 48% of these withdrawals.
1/ 🚀 Ethereum’s Shanghai/Capella (Shapella) upgrade went live on April 12, 2023, enabling ETH withdrawals from the staking contract. Since then, there has been a net outflow of 320,000 ETH, but the upgrade has also boosted deposit activity, lowering the risk of staking. pic.twitter.com/KF5mhn0wI8
— Kunal Goel (@kunalgoel) May 8, 2023
Additionally, most partial withdrawals happened immediately following the upgrade, as validators updated their withdrawal credentials to receive their accumulated rewards. However, since then, partial withdrawals have fallen significantly.
The Shapella upgrade has refocused attention on Ethereum staking, with exciting innovations like DVT and restaking on the horizon. Kunal Goel also noted that @Rocket_Pool’s Atlas upgrade has led to a surge in new minipools and a growth in RETH supply. This update increased capital efficiency and reduced node operator fees to incentivize more staking deposits.
It’s clear that the Shapella upgrade has had a significant impact on the world of cryptocurrency, particularly in the area of staking. With more innovations on the way, it’s an exciting time for those involved in Ethereum staking.
Read more:
- Ethereum Staking Reaches ATH: Over 19 Million ETH Now Staked
- How Will ETH Price Be Affected By Ethereum Foundation’s Transfer Of $30 Million Worth Of ETH To Kraken?