• Ethereum’s Shanghai upgrade is set to roll out in March 2023, allowing validators to withdraw staked ETH.
• 16 million ETH has been staked since the Beacon chain was introduced, representing 14% of the total supply.
• The revenue from ETH staking has increased by 20% after dropping sharply in mid-December.
The Ethereum network is set to witness a major upgrade in March 2023 with the roll out of its Shanghai upgrade. This will enable the withdrawal of staked ETH from the network, bringing an end to the two-year wait for validators who have been unable to withdraw their ETH. The upgrade is part of the Ethereum Improvement Proposal (EIP) 4895 and is currently being tested on a developer-focused test network.
Furthermore, developers are aiming to launch public testnets for the Shanghai/Capella upgrade next month in order to stick to the timeline for staked ETH withdrawals. This upgrade also promises to bring other improvements to the Ethereum network, such as a reduction of gas fees and increased throughput.
The number of validators staking ETH has also seen a steady increase over the past few days. Data from Staking Rewards reveals that more than 16 million ETH has been staked since the Beacon chain was introduced, representing 14% of the total supply. Furthermore, the revenue generated from ETH staking has seen a 20% increase after dropping sharply in mid-December. Although Ethereum has the lowest staking ratio when compared to other major chains, such as Cardano [ADA] and Solana [SOL], which are above 70%, the roll out of the Shanghai upgrade could see an increase in the staking ratio of ETH.
Overall, the Shanghai upgrade is set to bring major improvements to the Ethereum network and will provide validators with the ability to withdraw staked ETH. This could potentially lead to increased usage of the network, as well as increased revenue from staking.