Ethereum Set to Activate Shapella Upgrade with Staking Withdrawals on April 12 – Crypto News


The Ethereum blockchain is preparing to implement its next major upgrade since the shift from proof-of-work to proof-of-stake on The Merge. This upcoming change, dubbed Shapella, combines the Shanghai and Capella validator updates and is expected to occur on April 12, 2023. While most users will not be affected, the hard fork aims to allow staking validators to remove their staked ethereum.

Shapella Network Upgrade to Take Place on Ethereum Network at Epoch 194048

Members of the crypto space have been eagerly anticipating and talking about the upcoming Shapella upgrade, scheduled for April 12, 2023. According to statistics, the upgrade is less than 24 hours away. Shanghai will upgrade the network’s execution clients and Capella will focus on the consensus layer or consensus clients.

According to Ethereum Improvement Proposal (EIP) #4895, the purpose of Shapella is to enable staking validators to withdraw their funds for the first time. At present, $34 billion or 18.14 million ether is locked into the Beacon chain contract. After Shapella takes place, these validators will be able to withdraw their funds, subject to specific thresholds built into the rules, such as 1,800 validator cap per day. Additionally, specific validators must designate a valid withdrawal address for full withdrawals, and there are two types of withdrawals.

Those with a valid withdrawal address and excess funds earned from validating or staking will undergo partial withdrawals. Full withdrawals will enable validators to remove the entire 32 ETH required to stake and exit the validator system entirely. The average ethereum user will not be required to take any action for the hard fork, but all validators must upgrade their clients. The Ethereum Foundation has provided all the essential information about the upgrade in a blog post.

“After a successful Goerli transition, client teams have scheduled the Shapella upgrade for the mainnet activation,” the Ethereum Foundation detailed on March 28, 2023. “Consensus was quickly reached on an April 12th date during the 157th All Core Devs Execution Layer meeting. This upgrade follows The Merge and enables validators to withdraw their stake from the Beacon chain back to the execution layer. It also introduces new functionality to both the execution and consensus layer.”

On Tuesday, the day before the Shapella upgrade, the price of ethereum (ETH) has risen 2.9% over the last day. In the past 30 days, the second-largest crypto asset by market capitalization has also increased 29.9% against the U.S. dollar. Presently, the crypto asset’s overall valuation of $230.7 billion represents 17.9% of the crypto economy’s value, which is currently at $1.28 trillion. According to research from analysts at Kaiko, detailed in a newsletter, ethereum markets have not been able to keep up with bitcoin ahead of the Shapella upgrade.

“Ethereum’s spot volumes have struggled to keep up with bitcoin’s, with ethereum’s market share of USD volume recently reaching its lowest levels since March 2021,” Kaiko analysts wrote on Tuesday, April 11.

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32 ETH, All Core Devs, Analysts, Beacon Chain, Blockchain, Blog Post, Capella, client teams, community, consensus layer, crypto economy, Cryptocurrency, Ethereum, execution layer, full withdrawals, Functionality, Funds, Hard Fork, Kaiko, Market Capitalization, Market Share, partial withdrawals, Proof of Work, Proof-of-Stake, rules, Shanghai, Shapella, Spot Volumes, staking, The Merge, thresholds, Upgrade, US Dollar, Validators, withdraw, withdrawal address

What are your thoughts on the Shapella upgrade and its potential impact on the Ethereum network and the wider crypto market? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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