Binance Research (Shivam Sharma)
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The Shanghai Upgrade is an upcoming Ethereum upgrade which will enable withdrawals of staked ETH.
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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.
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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.
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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?
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ETH’s relatively low staking ratio, alongside its deflationary supply mechanics, unique monetary policy and ESG credentials provide us with some opportunities to analyze.
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On the other hand, ongoing macro uncertainty, as well as increasing alt-L1 dominance, might pose a risk for Ethereum.
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