• Ethereum developers have decided to prioritize unlocking staked ETH in the Shanghai upgrade, scheduled for March 2023.
• The upgrade is designed to make staking more attractive for individuals and institutions by allowing for withdrawals of staked ETH.
• Currently, 15 million ETH tokens, worth more than $20 billion, are locked up by over 495k active validators.
Ethereum developers have decided to move forward with the Shanghai upgrade, scheduled for March 2023, with the main priority being to enable the withdrawal of staked Ether (ETH). This upgrade is seen as critical to making staking more attractive to individuals and institutions, as it will finally allow Ethereum holders to access their tokens that are currently locked up.
The resolution was reached during the first virtual meeting of the year, with Tim Beiko, who coordinates other Ethereum developers, stating that other features should likely be removed from the Shanghai upgrade and moved to other upgrades. Currently, data from Beaconcha.in shows that 15 million ETH tokens, worth more than $20 billion, are staked by over 495k active validators. This is a significant amount of capital that is inaccessible to its owners and could be preventing other investors from staking their ETH to help secure the network.
The Shanghai upgrade is seen as critical for the Ethereum network, as it will potentially bring a slew of improvements. With the upgrade, staking will become more attractive to investors, as they will be able to access their tokens that are currently locked up. This could potentially bring more capital into the Ethereum network, which could be beneficial for the ETH market in the long run.
Of course, the Shanghai upgrade could also potentially cause some turbulence in the ETH market in the short-term, as investors adjust to the new conditions. However, the long-term prospects of the upgrade are seen as bullish, as it could bring more capital into the network and make staking more attractive for investors. Time will tell how the market will react to the upgrade, but for now, Ethereum developers are pushing forward with plans to enable the withdrawal of staked ETH.