According to Bloomberg News, Ethereum developers said the upcoming Shanghai upgrade, scheduled for March, will include the ability to withdraw staked ETH.
The confirmation comes as a welcome relief to stakeholders and vested parties who, after months of speculation about indefinite token lock-in, can now see the light at the end of the tunnel.
Since the Beacon Chain went live in November 2020, Ethereum has been steadily deposited into the staking contract.
Currently, 15.9 million ETH worth approximately $19.8 billion have been deposited, accounting for 13.2% of the total supply.
What is the future of Ethereum?
Messari data indicated that Ethereum has the lowest staking ratio of any major Proof-of-Stake (PoS) chain. The staking ratios of other significant PoS chains ranged from 46% to 90% for BNB.
As March approaches, Twitter user @MStiive predicts a “radical increase” in staked Ethereum, pushing the staking ratio higher and more in line with other chains.
Others, however, believe that allowing withdrawals will result in a mass ETH exodus, adding to sell pressure in an already fragile market still reeling from last year’s scandals.
Shanghai: What to Expect
Following the Merge in September 2022, Shanghai is the next major upgrade for the Ethereum network. The following are some key highlights of what to expect:
- Gas fee reduction for layer 2 solutions, potentially making Ethereum faster and cheaper to use post-Shanghai.
- Data storage and access efficiencies, such as the removal of historical block hash data from contracts.
- Withdrawal of staked ETH and removal of contract lock on staked tokens, allowing unstaking.
Despite the bearish narrative surrounding Shanghai, @TheEliteCrypto believes the upgrade will be a positive catalyst for the second-largest cryptocurrency. Perhaps even a return to pre-FTX pricing levels.
“Exciting thoughts on the potential for an upgrade in Shanghai to boost the bullish trend for #ETH. Who knows, maybe we’ll even see it reach 1.6K! Good morning, fam!“
To read our blog on “BNB Chain surpasses Ethereum in terms of unique wallets,” click here
