Ethereum update to unlock $33 billion in the cryptocurrency world

This week, investors will be able to access more than $33 billion in ether as part of a Ethereum update blockchain revamp.

Shapella, a new software upgrade to the Ethereum blockchain, will allow market participants to redeem their “staked ether” – coins they have deposited and locked up on 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 Attestant, a company that facilitates ether staking, up to 1.1 million ether will be ready for withdrawals in the week following the blockchain revamp. Based on the current ether price of around $1,860, that would be worth nearly $2 billion.

Traders looking for an edge are now trying to figure out how this unexpected ether windfall will affect prices. However, judging is difficult, according to Robert Quartly-Janeiro, chief strategy officer at crypto exchange Bitrue.

“The only certainty is that the Shanghai hard fork will cause some short-term volatility,” he continued.

Some market participants are concerned that unlocking staked coins will result in massive withdrawals and a wave of selling, driving prices rapidly lower.

However, according to Bundeep Rangar, CEO of blockchain investment firm Fineqia International, only about 29% of all ether staked by volume is currently profitable in dollar terms, implying that the majority would be sold at a loss (FNQ.CD).

“It appears therefore unlikely that much of the staked ether will be sold,” Rangar added.

Key Features of Ethereum update Shapella Upgrade

Notably, The Beacon Chain asset withdrawal is one of many advantages that the Shapella upgrade is expected to bring to the Ethereum network. This will enable the network to release a staggering $30 billion worth of staked ETH, representing a sizeable amount of liquidity.

The Shapella Upgrade’s anticipated reduction in gas fees for developers is another important aspect. Since it will now be more affordable for developers to build and deploy smart contracts and decentralised applications, this change is likely to draw more developers to the platform.

THE PUZZLE’S FINAL PIECE

Shapella would bring an end to a long wait for investors who have been depositing ether in exchange for a yield since the staking project began in 2020.

Last year, Ethereum developers paved the way for this development by ditching energy-intensive mining in favour of a “proof-of-stake” system in which ether owners lock up 32 coins to check new records on the blockchain, earning new ether on top of their “staked” coins.

BuyUcoin Will Support the Shapella Upgrade of the 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 occur at epoch 194,048 or roughly at 2023-04-12 22:27. (UTC). The Ethereum (ETH), Optimism (OP), and Arbitrum (ARB) networks will be temporarily unavailable starting around 2023-04-12 22:20 (UTC), where applicable, for deposits and withdrawals of ETH, OP, ARB, and ERC-20 tokens.

Please be aware:

• BuyUcoin will raise the minimum unlock count of deposits into the Ethereum (ETH) network from the current 12 blocks to 64 blocks following the Shapella upgrade.
• On April 13, 2023, from 3:00 AM IST to 6:00 AM IST, we have scheduled a downtime for ETH and ERC20 deposits and withdrawals as a precaution.
• No trading on the platform will be impacted by the change. You can trade all tokens, including ERC-20 tokens, as usual. You may relax knowing that your token balances and money are secure 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 the network upgrade:

Shapella ETH Mainnet Announcement

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• Source: https://blog.buyucoin.com/blockchain/ethereum-update-shapella/