Blockchain News

Ethereum Shanghai Upgrade: $326M Expected to Hit Market

Glassnode's on-chain analysis suggests that the impact of the Shanghai upgrade on the Ethereum market is likely to be minimal, with only a fraction of the estimated 170,000 ETH becoming liquid.

Capella Upgrade to Bolster Staking Industry

On-chain analysis from Glassnode has estimated that roughly 170,000 Ethereum, worth approximately $326 million, will be sold following today's highly anticipated Shanghai upgrade.

The upgrade, also known as "Capella", will finally allow users to withdraw ETH that has been locked up on the Ethereum network for the past two years. The majority of the newly unlocked sum, approximately 70,000 ETH, is expected to come from validators exiting the network, pulling their staked holdings with them.

The report indicates that there are 253 depositors waiting to do this, but analysts added that "withdrawals are most likely related to a change in their technical setup, rather than exiting their position."
Ethereum's long awaited upgrade has been the subject of much price speculation.

The remaining 100,000 ETH is expected to come from users withdrawing their staking rewards to sell on the market. Glassnode analysts said they only expect roughly $133 million worth of ETH to "actually become liquid" following the activation of withdrawals.

Despite projecting upwards of $326 million in Ethereum potentially hitting the market, Glassnode's report concludes that the move "is expected to be a lot less dramatic than many have painted it to be," adding that should the Shanghai upgrade go off without a hitch, it "will bolster a growing staking industry."

What is Ethereum:

Ethereum is an open-source, distributed computing platform based on blockchain technology that can execute smart contracts - that is, the terms written in the contract will be executed transparently, automatically when the previous conditions are satisfied, and no one can interfere. At the same time, Ethereum also allows developers to build decentralized applications (DApps) and decentralized autonomous organizations (DAO).

Find more about Ethereum here:

Website | Twitter | Documentation | Whitepaper | Reddit | Discord | Youtube | GitHub | Ethereum Foundation Blog |

Related News