This week, investors will be able to access over $33 billion worth of Ether as part of an overhaul of Ethereum’s updated blockchain.
Shapella, a new software upgrade to the Ethereum blockchain, will allow market participants to redeem their “staked ether” – coins they have deposited and locked onto the network in exchange for interest over the past three years.
According to Dune Analytics, approximately 15% of all ether is staked, totaling $33.73 billion in market value.
According to Sreejith Das, CEO of Attesting, a company that facilitates ether staking, up to 1.1 million ether will be ready for withdrawal within a week of the blockchain overhaul. Based on the current Ether price of around $1,860, that would be nearly $2 billion.
Traders looking for an edge are now trying to figure out how this unexpected windfall of Ether will affect prices. However, judging is difficult, according to Robert Quartly-Janeiro, Chief Strategy Officer at Bitrue.
“The only certainty is that the Shanghai hard fork will cause some short-term volatility,” he continued.
Some market participants fear that unlocking staked coins will lead to mass withdrawals and a wave of sales, leading to a rapid drop in prices.
However, according to Bundeep Rangar, CEO of blockchain investment firm Fineqia International, only around 29% of all ether staked by volume is currently profitable in dollars, implying that the majority would be sold at a loss (FNQ.CD).
“So it seems unlikely that much of the staked ether will be sold,” Rangar added.
Key Features of Ethereum Shapella Upgrade
Notably, the removal of assets from the Beacon Chain is one of the many benefits that the Shapella upgrade is expected to bring to the Ethereum network. This will allow the network to release a staggering $30 billion worth of staked ETH, which is a significant amount of liquidity.
The anticipated reduction of the Shapella upgrade in gas fees for developers is another important aspect. As it will now be more affordable for developers to build and deploy smart contracts and decentralized applications, this change is likely to attract more developers to the platform.
THE LAST PIECE OF THE PUZZLE
Shapella would end a long wait for investors depositing ether in exchange for return since the staking project began in 2020.
Last year, Ethereum developers paved the way for this development by ditching energy-intensive mining in favor of a “proof-of-stake” system in which ether owners lock up 32 coins to verify new records on the blockchain, earning new ether on top of their “staked” coins.
BuyUcoin will support Shapella upgrade of Ethereum (ETH) network
The Shapella upgrade for the Ethereum (ETH) network will be supported by BuyUcoin.
- The Shapella upgrade for the Ethereum (ETH) network will take place at epoch 194,048 or approximately 2023-04-12 22:27. (UTC). The Ethereum (ETH), Optimism (OP) and Arbitrum (ARB) networks will be temporarily unavailable from 2023-04-12 22:20 (UTC), as applicable, for deposits and withdrawals of ETH, OP, ARB and ERC-20 tokens.
- BuyUcoin will increase the minimum number of deposit releases in the Ethereum (ETH) network from the current 12 blocks to 64 blocks after the Shapella upgrade.
- On April 13, 2023, from 3:00 a.m. IST to 6:00 a.m. IST, we have scheduled a halt to ETH and ERC20 deposits and withdrawals as a precautionary measure.
- No trading on the platform will be impacted by the change. You can redeem all tokens, including ERC-20 tokens, as usual. You can relax knowing that your token balances and money are safe on the platform.
- All users who have ETH and ERC-20 tokens in their BuyUcoin accounts will have BuyUcoin take care of all necessary technical requirements.
- Once we determine that the upgraded Ethereum (ETH) network is stable, we will reopen deposits and withdrawals for affected tokens on the Ethereum (ETH), Optimism (OP), and Arbitrum (ARB) networks without further announcement. to users.
Please see the following for more information on network upgrade: