Pro
Staking Since Shapella
Key Insights
- Following the recent upgrade, Ethereum has become a fully-featured Proof-of-Stake blockchain that supports withdrawals from its staking contract.
- Since the upgrade, there have been net staking outflows of 320,000 ETH. Centralized exchanges accounted for 82% of full withdrawals, with regulation-hit Kraken accounting for 48% alone.
- Withdrawals were partially offset by a boost in deposit activity, with staking pools catering to institutions experiencing significant growth in net inflows.
- Rocket Pool's Atlas upgrade improved capital efficiency and led to the deployment of more minipools, resulting in a substantial growth in RETH supply.
- Shapella has ushered in an era of innovation for Ethereum's staking solutions, with Binance, Lido, Obol Network, and Eigenlayer launching new products and services in the staking space.
Ethereum’s Shanghai/Capella (Shapella) upgrade went live on April 12, 2023. The most significant protocol update was that it enabled ETH withdrawals from the staking contract. With the upgrade, Ethereum finally completes its transition to a full-featured Proof-of-Stake (PoS) network.
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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