Ether Staking Soars Following Shapella Hard Fork

2023-04-18 10:12

Trijo News

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In the first four days after the Shapella hard fork, over 1 million Ether, equivalent to approximately $2.1 billion, has been successfully withdrawn from the Ethereum Beacon Chain. This was accomplished through 473,700 withdrawal requests, with April 15 being the busiest day, with 392,800 ETH processed. Currently, more than 87% of active validators, or 469,000 out of 540,000, can withdraw their staked Ether. Despite initial debates within the Ethereum community about its potential impact on Ether's price, the cryptocurrency increased by nearly 10% in the first four days after the Shapella hard fork.

CEO of Labrys (Blockchain & Web3 Development) Lachlan Feeney feels that the Shapella hard fork will increase the amount of Ether staking in the medium to long term, which will only enhance Ethereum at the consensus level. He noted that early adopters wanted to liquidate after roughly 30 months of waiting for some, but he expects an Ether staking record to be reached in the future.

Meanwhile, the Head of Research at Matrixport, Markus Thielen, believes the shutdown of cryptocurrency exchange Kraken’s betting services may have resulted in higher numbers. He believes that Shapella will eventually bring more institutional investors to Ethereum, but he also anticipates that the favourable price action may moderate this week due to the increased pressure of selling.

The 1 million mark is a 500% increase from a projection made on April 11 by Glassnode, which anticipated that only 170,000 Ether were not staking after Shapella’s first week. Nansen, an on-chain analytics business, predicts that 1.4 million Ether will be drawn after the first days of Shapella.

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