Since the widely-anticipated Shapella upgrade enabled these withdrawals less than 24 hours ago, over $222 million worth of Ethereum ($ETH), the second-largest digital asset by market capitalization, has been unstaked from the network.
According to information provided by blockchain monitoring resource Lookonchain, 111,378 ETH were rapidly unstacked shortly after the upgrade, with liquid staking service Lido Finance accounting for 57.2% of all withdrawals after 63,695 ETH left its service.
According to Lookonchain, more than 19.19 billion ETH worth more than $38 billion are staked on the network, and more than 1 million ETH have been generated in rewards since the Beacon chain enabled staking. The service reports that the average price of ETH staked is $1,964.
To facilitate the withdrawal of staked Ether (ETH), the Shapella platform released an update on April 12 that included the implementation of Ethereum Improvement Proposal (EIP) 4895. As the core team previously explained on GitHub, Shapella enhanced the network’s petrol fees for certain transactions in unison with the withdrawal mechanism.
The upgrade completes Ethereum’s transition to a Proof-of-Stake consensus mechanism, and it is widely anticipated that the withdrawal of staked Ether will cause short-term price fluctuations. Due to withdrawal limits, not all of the 18 million ETH staked will be available for withdrawal at the same time.
Partial withdrawals maintain validators operational by autonomously distributing ETH to them so that they have the necessary 32 ETH balance. Full withdrawals halt the validator and remove the entire amount wagered. Approximately 3.5% of validators moved to a complete withdrawal.
It was widely anticipated that the upgrade would have a negative impact on the price of ETH, as those who had previously secured funds would withdraw them. Instead, data indicates that the cryptocurrency’s price has risen 4.5% over the past 24 hours to challenge the $2,000 threshold at the time of writing.
Previously hesitant investors may have entered the Ethereum market now that they can stake their tokens to receive validator rewards without having to tie up their funds for an indeterminate period of time.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.