The upcoming Shanghai upgrade on the Ethereum blockchain, scheduled for March this year, will introduce the ability for stakers to withdraw their funds for the first time. Unlike other proof-of-stake networks like Cosmos, where the withdrawal period is fixed at 21 days, Ethereum’s withdrawal duration is dynamic and varies based on the number of validators leaving the network at any given time. This update was shared by a Web3 researcher known as WestieCapital on Twitter.
WestieCapital explained that validators looking to exit the Ethereum network will go through two stages: the exit queue and the withdrawal period. After successfully passing through the exit queue stage, validators may have to wait either 27 hours or 36 days for the withdrawal stage to be completed. The significant gap between these two waiting periods is designed to act as a deterrent for any potential bad actors within the network.
Recent data has shown that the Ethereum Beacon Chain staking contract currently holds over 16 million units of ETH tokens, which is equivalent to more than $22 billion and represents over 13% of the coin’s market cap. This milestone was achieved just four months after Ethereum transitioned to a proof-of-stake network. Notably, the four major Ethereum validators, including Lido, Coinbase, Kraken, and Binance, collectively control more than 55% of all staked ETH.
As of now, the price of ETH is trading at $1,408, reflecting a 13% increase over the past seven days. In the last 24 hours, crypto traders have exchanged over $9.5 billion worth of ether tokens. This surge in trading activity and the substantial amount of ETH being staked on the network indicate growing interest and participation in Ethereum’s proof-of-stake model, especially with the upcoming Shanghai upgrade set to bring new opportunities for stakers to interact with the network.
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