Ethereum Staking Withdrawals opening in Q1-2023
Fourstack • December 10, 2022
The Ethereum community is eagerly anticipating the upcoming Shanghai upgrade, which is set to be released in Q1 2023. The update will bring a number of important changes and improvements to the Ethereum network, including the much-anticipated ability to withdraw staked Ethereum.
One of the key criticisms of the current Ethereum deployment is that users can only stake their Ethereum, but not unstake it. This has led to a situation where many users are unable to access the funds they have staked, creating uncertainty and instability in the market. Many market participants with a short-term view have forcibly taken a discount in the conversion back to Ethereum on the secondary markets. The Shanghai update addresses this issue by allowing users to withdraw their staked Ethereum, giving them greater control over their funds.
While the inclusion of staked Ethereum withdrawals is a welcome development, it is important to note that it is not a silver bullet. The process of withdrawing staked Ethereum will still be subject to a queue, so users will not be able to access their funds instantly. However, the ability to withdraw staked Ethereum is expected to make the secondary markets more stable, as it will reduce the deposit-only nature of the current Ethereum deployment.
This is good news for Fourstack and our Ethereum strategy, as it will make the market more liquid and allow us to offer our clients more stable and reliable investment opportunities. The Shanghai update is an important step forward for the Ethereum network, and we are excited to see the positive impact it will have on the market.