Ethereum’s Shapella Upgrade Activated: ETH Reacts to Staking Withdrawals

• Ethereum successfully implemented Shapella upgrade on mainnet on Wednesday.
• Withdrawals enabled, 73,214 ETH withdrawn so far and 0.269% total staked ETH decreased.
• Potential selling if withdrawals speed up and more validators can exit the staking program.

Shapella Upgrade Activated

Ethereum mainnet successfully implemented the Shapella (Shanghai and Capella) upgrade on Wednesday at 11:27 PM UTC. This monumental occasion made many think that the price of ETH would dump instantly, however ETH ended trading flat and is currently at $1,913 as of CoinGecko data.

Staking Withdrawals Enabled

ETH staking withdrawals were enabled with 27,181 withdrawals processed in total and 73,214 ETH distributed according to data. Huobi is the biggest entity able to withdraw 39,776 ETH followed by PieDAO (27,270 ETH) and Kraken (19,616). 19,621 validators are waiting to fully exit from the program out of 567,209 while 0.1% have already left it.

What Is Ethereum’s Shanghai Upgrade?

The Shapella upgrade marks full implementation of proof-of-stake consensus mechanism on Ethereum allowing users to enter or exit the program whenever they want without locking up their funds for long periods of time.

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Why You Should Care

The Shapella upgrade is one of the largest upgrades in Ethereum’s history so it is important to pay attention to potential selling if withdrawals speed up and more validators can exit the staking program which could affect ETH negatively in response