The upcoming Ethereum Shanghai upgrade, scheduled to take place late Wednesday, will allow validators that maintain the blockchain to unstake and withdraw ether (ETH) they’ve pledged to keep the network running. Nansen, a blockchain analytics firm, run an analysis that reveals that only a maximum of 1% of Ethereum’s total validators and staked ETH, a total of 141,499 ETH worth around $270 million, is poised to be withdrawn. On this matter, Huobi is the largest operator, currently being the only one with a desire to remove almost 40,000 ETH.

It should be noted that all validators cannot withdraw their ETH at once as there’s a daily limit set by Nansen. According to Edgar Rootalu, a data engineer of Nansen, currently, eight validators can exit per epoch, equalling approximately 1,800 per day.

With this upgrade, the Ethereum blockchain will transition to proof-of-stake (PoS), which will allow those who have staked their tokens to withdraw their funds. To explain further this addition, Walter Teng – vice president of digital asset strategy from Fundstrat Global Advisors– stated that unbounded stakers have a few possibilities, such as restaking with liquid staking derivatives, selling tokens, using them to lever up, or hold the tokens and sell later. Teng predicted that the most popular action by validators will be the first option - restaking with liquid staking derivatives.



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