The Shanghai Upgrade is an upcoming Ethereum upgrade which will enable withdrawals of staked ETH.
Until now, staking ETH has been a one-way street i.e. validators could deposit ETH to the Beacon Chain to support Proof-of-Stake on Ethereum, but not withdraw it. Shanghai will enable these withdrawals.
Over 16.5M ETH, worth over US$25B, has been staked via 520K+ validators (so far). The most common place to stake ETH has been with liquid staking provider, Lido.
Check out the report to see: (1) How much of staked ETH is liquid? (2) How many stakers are in profit? (3) How will withdrawals work?
ETH’s relatively low staking ratio, alongside its deflationary supply mechanics, unique monetary policy and ESG credentials provide us with some opportunities to analyze.
On the other hand, ongoing macro uncertainty, as well as increasing alt-L1 dominance, might pose a risk for Ethereum.
Ethereum's Shanghai Upgrade: By the Charts
Binance Research (Shivam Sharma)
Feb 16th, 2023