With the much-awaited Shapella upgrade, Ethereum validators and users will be able to claim their accumulated rewards with a value of over $2 billion after the upgrade is completed. Ethereum has been generating staking rewards since it introduced its beacon chain back in December 2020, but validators and users have not been able to access them due to the system's design until now. Shapella will provide two withdrawal options, partial and full, and there is a high chance that some of the accumulated ETH will be sold in the market during the week following the implementation of the upgrade.

Partial rewards represent 6% of the 18 million ETH currently staked on the Ethereum network. If all validators register to claim these rewards, the process of disbursement would take around five days for the 562,000 validator entities. A maximum of 16 validators can receive their partial rewards every 12 seconds automatically, but for that to happen, they would have to have a 0x01 withdrawal credential.

Full withdrawals or exits involve closing the validator and recovering the entire staked balance, with a daily limit of 1,800 validators closing their stake. This means that each day a maximum of 57,600 ETH ($109 million) in full withdrawals can take place. Both partial and full withdrawals could lead to the release of 1.4 million ETH ($2.6 billion) within the first five days after the Shapella upgrade.

Analysts believe that the release of such a large amount of ETH could potentially have an "acceptable impact" on the price of the cryptocurrency. To minimize this impact and prevent sell-off due to the partial withdrawals, it is important that validators register quickly to receive their rewards.



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