As per recent market developments, Ethereum has managed to surge following the Shapella upgrade withdrawals. Currently, more than 1 million ETH, worth approximately $2.1 Billion has been withdrawn from the Beacon Chain within the first four days of the upgrade. At the same, the upgrade enabled Ethereum (ETH) to blow past the $2,100 mark on the enthusiasm that the new upgrade could lead to increased growth in investor interest.
Since then, Ethereum has been continuously on the rise, and it even managed to hit its 11-month highest of approximately $2,141. As a result of the recent spike, Ethereum (ETH) is up by 77% on a year-to-date basis, falling shortly behind Bitcoin. However, the gap between the two cryptocurrencies appears to be filling up fast. The 1.03 million ETH withdrawals have resulted from almost 473,7000 withdrawal requests, with the largest of them being 392,800 ETH. Keeping the entirety of the active validators in mind, a whopping 87% of the total 540,000 are now empowered to withdraw staked Ether.
Ethereum (ETH) is still faring strongly in comparison to other cryptocurrencies. At the time of writing, ETH has declined from its 11-month highest and is currently trading for almost $2,092. Similarly, the token witnessed an increase of a mere 0.18% in the previous 24 hours and has a total market cap of $249 billion.
Validators are Restaking Ethereum to the Beacon Chain
The masses argue that a high percentage of the withdrawn stake has been going back to the Beacon Chain because validators are actively seeking to compound their interest. Similarly, this is paving the way toward the increase in the net stake.
In the longer run, the Shapella upgrade is expected to increase the number of staked ETH and also strengthen the overall network. At the same time, a few analysts believe that a great chunk of unstaked Ether from Kraken would be eventually recycled back to the Bacon Chain through other multiple entities.
Furthermore, it is expected that the positive price action would start cooling off sometime this week amid increased selling pressure. The Shapella update is expected to attract more investors to invest in Ethereum.