The Impact of the Shanghai Upgrade on ETH Staking
The highly anticipated Shanghai upgrade brought improved speed and scalability to the Ethereum network. However, one of its most important features was the ability for validators and stakers to withdraw their staked ETH from the Beacon Chain. Here are the key points:
– The Beacon Chain was created to facilitate the transition to Ethereum 2.0, but staked assets and rewards were inaccessible until the Shanghai upgrade.
– Prior to the upgrade, there were 18.1 million staked ETH on the network.
– According to Token Unlocks, there are now 22.99 million staked ETH, accounting for 18.86% of the circulating supply.
– About 25% of the currently staked ETH was staked after the Shanghai upgrade, totaling 5.84 million ETH.
– The net ETH staking ratio increased by 147% post-upgrade, with 9.82 million ETH deposited and only 3.97 million ETH withdrawn.
Positive Impact on ETH Staking
Contrary to speculations, the Shanghai upgrade did not lead to a large-scale withdrawal of ETH. Instead, it sparked confidence in ETH staking. Users are now willing to stake their ETH as they have the freedom to withdraw at will. This has resulted in a significant rise in demand for liquid staking aggregator projects like LSD protocols.
The Strengthening of ETH Elites
Santiment reports a wealth accumulation trend among the top 10 ETH addresses. These wallets have increased their ETH holdings from 11.2% to 34.6% of the token’s supply in the last five years. This suggests that ETH elites are strengthening their grip on the coin supply.
Closing Thoughts
The Shanghai upgrade has had a positive impact on ETH staking, boosting confidence and increasing the total amount of staked ETH. Additionally, the concentration of ETH among the top addresses indicates a wealth accumulation trend. Despite a slight decline in the last 24 hours, ETH remains the second largest cryptocurrency in the market.
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