Ethereum’s Shanghai Upgrade Results in Just Over 1 Million Token Withdrawals, No Market Upheaval: Details

Ethereum completed its Shanghai upgrade on April 12, allowing the withdrawal of ETH tokens staked on the blockchain.

Written by Radhika Parashar, Edited by David Delima | Updated: 17 April 2023 18:43 IST

Ethereum’s Shanghai Upgrade Results in Just Over 1 Million Token Withdrawals, No Market Upheaval: Details

Photo Credit: Unsplash/ Shubham Dhiman

ETH is trading at its eleven-monthly high price point of $2,097 (roughly Rs. 1.71 lakh)

Highlights

ETH validators are not rushing to withdraw their staked tokens
Crypto market has remained stable after Ethereum’s Shanghai upgrade
The crypto market is currently witnessing a bullish sentiment

The Ethereum blockchain underwent the Shanghai upgrade last week, but has not seen any upheaval in the market that was predicted by members of the crypto community. The withdrawals of staked ETH tokens amounted for only over 1 million tokens over the last five days. This did not shake up the crypto market as expected, hinting at a bullish sentiment in the market. In the backdrop of this development, Ether has jumped to its highest prices recorded in eleven months.

On April 12, Ethereum completed its Shanghai upgrade that now allows it validators to withdraw the ETH tokens that they have staked on the blockchain to enter the blockchain validator software. To do so, one has to deposit or ‘stake' ETH 32 on the blockchain and take the responsibility to store data, process transactions, and earn rewards in return.

Days before Ethereum's Shanghai upgrade, members of the crypto community began to suspect that several ETH stakers could rush to the blockchain to withdraw their tokens. If that happened, the crypto market could suffer massive upheaval.

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Contrary to these expectations, only over 1 million ETH tokens left the Ethereum blockchain from over 477,085 transactions, data by Beacon Chain tracker showed. Currently, ETH is trading at the price point of $2,097 (roughly Rs. 1.71 lakh). At this rate, around $2 billion (roughly Rs. 17,194 crore) have reportedly been "unstaked" out of the Ethereum blockchain.

Ether has a market cap of over $249 billion (roughly Rs. 20,40,617 crore). This is why the amount it lost after its Shanghai upgrade did not have a catastrophic effect on its trading value as well as on the overall crypto market. Three "whale" wallets withdrew over 19,000 ETH tokens, details of which have emerged on Twitter.

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2.

A total of 1,024,099 $ETH ($2.15B) has been withdrawn.

Here are the top 15 withdrawal addresses::point_down:

- 3 addresses re-staked $ETH after withdrawal, with a total of 19,844 $ETH.

- 3 addresses transferred $ETH to CEX after withdrawal, with a total of 71,444 $ETH. pic.twitter.com/CZ7zJXv3tm
— Lookonchain (@lookonchain) April 17, 2023

“Ethereum, the second-largest cryptocurrency, achieved a new 11-month high. ETH, in the last few days, clocked a 134 percent increase since its lowest cycle in June 2022. This has fuelled fresh enthusiasm among investors following the successful Shanghai upgrade,” Edul Patel, CEO of Mudrex crypto investment firm told Gadgets 360.

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Further reading: Cryptocurrency, Ethereum, Shanghai, Staked Ether

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More