According to a recent tweet from Kunal Goel, a researcher at Messari, Ethereum’s Shanghai/Capella (Shapella) upgrade went live on April 12th, 2023. This upgrade has enabled ETH withdrawals from the staking contract and has also boosted deposit activity, thereby reducing the risk of staking.
Since the upgrade, there has been a net outflow of 320,000 ETH, but an increase in deposit activity has offset this. Centralized exchanges such as Kraken, Binance, and Coinbase accounted for 82% of full withdrawals.
Interestingly, Kraken, which regulations have impacted, was responsible for 48% of the total withdrawals. Most partial withdrawals occurred immediately following the upgrade, as validators updated their withdrawal credentials to receive their accumulated rewards. Since then, partial withdrawals have fallen significantly.
Goel further stated that Rocket_Pool’s Atlas upgrade has also led to a surge in new mini pools and a growth in RETH supply. This update has increased capital efficiency and reduced node operator fees, thereby incentivizing more staking deposits.
However, Goel asserts that the Shapella upgrade has refocused attention on Ethereum staking, and more innovations like DVT and restacking are on the way. These developments are exciting for the Ethereum community and suggest that there are exciting times ahead for Ethereum staking.
Ethereum Price Analysis
Ethereum is currently showing bearish signs, as per the latest data from CoinMarketcap. The cryptocurrency is trading at $1,864.30, down by about 2.59% in the last 24 hours. However, the weekly chart recorded an increase of about 1.64%, indicating some optimism.
In addition, ETH’s trading volume has witnessed an increase of 34.73%, reaching $9,075,133,914 in the last 24 hours, whereas the market capitalization has decreased by 2.70% in the same time period.
As per technical analysis on Ethereum, market experts have observed a bearish trend in the long run, indicating a predicted downfall of the cryptocurrency’s value by $13.87 over the coming 7 days. This prediction suggests that by May 15th, 2023, the price of Ethereum may reach a level of $1,855.74, which may concern investors.
However, in the short term, machine learning algorithms have indicated that Ethereum is currently experiencing a neutral trend. This finding could indicate a slight increase in value in the next few hours, but there is also a chance of a possible decrease.
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