Ethereum: ETH withdrawals have exceeded 1 million since Shapella

The hard fork Shapella (or Shanghai) activated on April 13 allowed the holders from ETH tokens to start removing them from the staking. Withdrawals reach 1 million tokens since then, but without plummeting the Ethereum price.

This was the expected benchmark update in 2023 on the Ethereum network. Since April 13, Shapella – long named Shanghai – is therefore active, allowing users to withdraw their tokens placed in staking to secure the blockchain.

For developers, Shapella constitutes a major evolution and the concretization of the transition to Proof-of-stake. On the investors’ side, the hard fork was also seen as a potential risk for the ether price.

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Negative staking balance of 350,000 ETH over 24 hours

Some feared massive withdrawals with a bearish impact on the price of the cryptocurrency. These fears are not borne out at the moment. The value of the native Ethereum token, which was rising after the update, is still around $2100, even thoughone million ETH were withdrawn from the staking.

Over the past few 24 hoursthe scale is negative by more than 350 000 ETH. Deposits are significantly lower than withdrawal requests over the period. Token Unlocks counts 392,000 withdrawn ethers, for about 41,000 deposits.

Cumulatively since the activation of the hard fork, withdrawals amount to 1 million units. Today he has more than 17 million ETH in deposits on the Ethereum contract. This is equivalent to more than $36 billion at the current price.

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The proportion of ETH in staking is estimated at just under 15%. So there is considerable room for growth for Ethereum. Solana and Cardano show a share of tokens in staking above 60%.

14.96% of ether in staking

With 14.96% of the supply in staking, Ethereum allows users to generate interesting returns, around 5%. However, this rate is not fixed. It was above 5.6% before the activation of Shapella.

Finally, it should be noted that ETH withdrawals are not instantaneous. Ethereum still has a lot of progress to make in this area. The blockchain can handle approximately 1800 validator withdrawals or 56,000 ETH per day.

This limitation is both due to the number of transactions that can be performed on Ethereum and a security mechanism. Validators have the function of securing the network, as miners used to do with the PoW.

Binance, the world’s leading exchange, warns its users that ethers withdrawals will take some time. Active as of April 19 on the exchange, withdrawals may take anywhere from two to several weeks.

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