Ethereum Shapella Upgrade Finally Activated on Mainnet

The long-awaited Ethereum Shapella upgrade has been activated on the Ethereum mainnet, and withdrawals are now being processed.

As of the time of writing, a total of 120,274.34 ETH has been processed from 46,589 withdrawals, according to data from an open-source Ethereum explorer, Additionally, around 44% or 286,923 of the 546,134 active members can now ask for a partial or full withdrawal.

Notably, the majority of Ether that has been withdrawn at the moment varies between 2.8-3.2, indicating that staking rewards are primarily being withdrawn. Also, only validators that have submitted 0x01 credentials can process full and partial withdrawals. 

According to data from Blockchain Analytics firm Nansen, Lido Finance has the highest number of ETH depositors with 31.2%. Kraken Ventures, on the other hand, has the most ETH awaiting withdrawals, with 70.8%.

The Shanghai and Capella upgrades, collectively known as the Shapella upgrade, are two proposed Ethereum network improvements aimed at Increasing the Ethereum network’s scalability, efficiency, and usability.

Shanghai is the name of the fork on the execution client side, while Capella is the upgrade name on the consensus layer client side.

Ethereum’s Performance Post Shapella Upgrade

Ultimately, the market price of ETH following the upgrade will be heavily influenced by users’ activity. A bearish run is expected to occur if users continue to withdraw from the pool. If, on the other hand, the staking percentage continues to rise as a result of the update, the reverse effect will likely occur.

Since the Shapella upgrade, the price of ETH, presently at $1,920 was barely shifted in the first hour of the hard fork. Interestingly, this was earlier forecasted by an on-chain analytics provider, Glassnode. 

According to Glassnode, only 170,000 Ether of the total 18.1 million ETH staked on the Beacon Chain will be sold within the first week of the Shapella upgrade. Glassnode anticipated in its analysis that less than 1% of that total will be released during the first week.