Dear Ethereum Crypto fans, mark your calendars for April 12th

by Arthur · April 10, 2023

Source: Shutterstock

A big update is coming for the second largest crypto by market capitalization, Ethereum (ETH-USD). In fact, Ethereum’s announced Shapella upgrade is expected to hit the floor on April 12, allowing users to withdraw their stake ETH for the first time in the coin’s history.

Shapella marks one of the biggest upgrades to hit Ethereum in some time. It combines the previous Shanghai and Capella upgrades into one elegant package. Chen Zhuling, founder and CEO of the blockchain network RockXsaid 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 for crypto […] [Shapella] represents a game-changing development that positions Ethereum for sustained growth and success. As the platform continues to evolve, 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% in the last 24 hours.

So, what else do you need to know about Ethereum’s latest upgrade?

Ethereum Climbs Higher on Shapella Expectation

Shapella’s single most important feature is the additional ability to withdraw staked ETH. Earlier, Coin base (NASDAQ:COIN) and other centralized exchanges already offered liquidity access to ETH. In accordance Looking for Alpha, “Up until the time of Shapella’s implementation, users would have to use CEXs or decentralized finance protocols to exchange their locked ETH for a coin of equal value.”

With 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 stake 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 transaction-per-second limits.

Ethereum has had a bumpy ride since its peak in 2021. In fact, from around $4,700 per coin in November 2021, the crypto is currently trending around the $1,800 mark. This actually represents a local top for the coin. ETH has not broken the psychological barrier of $1,900 since August 2022. Heading towards the next flagship update, ETH fans are now surely hoping to reach new highs.

As of 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 author, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages her vast experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric car industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, Downline Podcast and more.