• The Ethereum Shanghai upgrade is set to go live later today, enabling users to withdraw coins from the Ethereum staking contract.
• Glassnode has broken down the possible scenarios that may follow after the ETH Shanghai upgrade goes live.
• The network will take up to 4.5 days to complete the scanning process of all validators who have signed voluntary exit messages in advance.
Ethereum Shanghai Upgrade
The Ethereum Shanghai upgrade is set to go online later today and will enable users to withdraw their coins from the Ethereum staking contract.
Impact on Market
Last September, Eethereum successfully transitioned to a proof-of-stake (PoS) consensus mechanism, meaning that stakers replaced miners as validators on the network. To become a staker, a user has to lock 32 ETH into a deposit contract. Now, there are concerns around as how this sudden unlock of these coins may impact the ETH economy.
In its latest weekly report,the on-chain analytics firm Glassnode has broken down the possible scenarios that may follow after the ETH Shanghai upgrade goes live later today. The upgrade will allow two types of withdrawals: partial and full withdrawals for those who have signed voluntary exit messages in advance.
Partial & Full Withdrawals
Partial withdrawals refer to automatic withdrawals of the staking rewards accumulated by validators, while full ones involve complete exits of locked amounts by investors. While users haven’t been able to withdraw their coins so far, they have still been able to sign an exit message in advance which will be scanned when the hard fork goes live today.
The scanning process is not an instant process and at current numbers it will take up 4.5 days for all validators who have signed voluntary exit messages in advance . There are still many validators that haven’t updated their withdrawal credentials yet but can do so once this update goes live later today..