The highly anticipated Shapella fork of Ethereum is scheduled to take place on April 12, 2023, and is expected to unleash a staggering $100 million worth of Ether into the market daily. As stakeholders brace themselves for this massive ETH stockpile influx, the selling pressure will likely significantly impact the world’s second-largest cryptocurrency price. The aftermath of the upgrade is anticipated to result in ETH trading well below its current market value. As the community prepares for this major event, it is crucial to remain vigilant and informed about the potential implications of this significant development.
Into The Block’s data analysis sheds light on the potential impact of the imminent unlocking of $34 billion worth of ETH. A recent tweet revealed that all requests for withdrawal of staked Ether would be subject to processing delays to prevent a mass exodus and potential security risks for the Ethereum network. This move demonstrates a responsible approach to managing the aftermath of such a significant event in the crypto world.
According to reports, withdrawing staked Ether in parts will require 4 to 5 days. However, the process is expected to take up to 100 days for those seeking to withdraw one-third of their total stake. This translates to a staggering $80 million to $100 million worth of ETH being withdrawn daily, causing significant concern among holders.
Glassnode, the blockchain analytics platform, has released an update on the Ethereum staking ecosystem. According to their findings, the amount of ETH being staked has experienced a minor setback due to regulatory concerns and the upcoming Shapella fork. Glassnode’s data also indicates that deposit activities on exchanges are currently low.
The Ethereum community on crypto Twitter is at odds regarding the potential consequences of staked Ether entering the market. Certain industry experts have forecasted a brief period of selling pressure for ETH, while others think that the bulk of staked ETH will be directed towards liquid staking initiatives. The recent dip in ETH’s value may encourage some beneficiaries to retain their unlocked Ether instead of offloading it.
