A big update is coming for the second-largest crypto by market capitalization, Ethereum (ETH-USD). Indeed, Ethereum’s heralded Shapella upgrade is expected to hit the floor on April 12, allowing users to withdraw their staked ETH for the first time in the coin’s history.
Shapella marks one of the largest upgrades to hit Ethereum in some time. It combines the previous Shanghai and Capella upgrades in one sleek package. Chen Zhuling, founder and CEO of blockchain network RockX, said the following about Shapella, per Seeking Alpha:
“With the Shapella Upgrade, the liquid staking landscape will be transformed forever, and Ethereum will become the benchmark yield for crypto […] [Shapella] represents a game-changing development that positions Ethereum for sustained growth and success. As the platform continues to advance, Ethereum is well-positioned to further diverge from Bitcoin and emerge as a leading blockchain platform, driving innovation and progress in the cryptocurrency space.”
Crypto fans seem to be well ahead of this compelling news today. Currently, the ETH crypto is up almost 2% over the past 24 hours.
So, what else do you need to know about Ethereum’s latest upgrade?
Ethereum Climbs Higher on Shapella Anticipation
Shapella’s single-most-important feature is the added ability to withdraw staked ETH. Previously, Coinbase (NASDAQ:COIN) and other centralized exchanges already offered liquidity access to staked ETH. According to Seeking Alpha, “Up to the time of Shapella’s implementation, users would have to use CEX’s or decentralized finance protocols to exchange their locked-up ETH for an equally valued coin.”
This in mind, FS Insight tweeted the following about the upgrade:
“Shapella is likely a significant de-risking event and a formal conclusion to Ethereum’s transition to proof-of-stake, resulting in a continued draw of investors to staking rather than an exodus.”
In addition to the new withdrawal capability, the upgrade will also lower ETH’s transaction fees and increase the blockchain’s transactions per second limits.
Ethereum has had a bumpy ride since its 2021 peak. Indeed, from around $4,700 per coin in November 2021, the crypto currently trends around the $1,800 mark. This actually represents a local peak for the coin. ETH hasn’t broken the $1,900 psychological barrier since August 2022. Heading toward the next flagship update, ETH fans are now surely hoping to reach new highs.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
