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Ethereum is dropping its next big update called “Shanghai” by March. This update’s gonna let stakers cash out their ETH that’s been locked since December 2020 on the beacon chain.
Shapella Upgrade is a fundamentally positive event, it catalyzes higher staking participation, bolsters staked ETH as a desirable asset, improves Ethereum’s security, and de-risks Ether as an asset.
The Ethereum network needs to upgrade to the Shanghai Fork in order to improve its efficiency, gas limit, block security, and to enable the network to be more scalable and able to handle more transactions.
With the transition to Ethereum 2.0, staking has become a popular option for achieving these goals. But before you stake your ETH on the blockchain, there are a few important things to consider.
The upcoming Shanghai hard fork (EIP-4895) on the Ethereum network, set for March 2023, aims to unlock a significant amount of staked Ethereum (“ETH”), which currently makes up more than 13% of the total supply of Ethereum.
For Ethereum stakers, the Shanghai update is a well-awaited change to Ethereum's Proof of Stake consensus mechanism. Aside from its effects on staking, it's also likely to have some ramifications on market demand for ETH.