ETH Shanghai Upgrade

The Ethereum Shanghai network upgrade is the first major upgrade during The Surge, the second of the 6 phases of the Ethereum 2.0 roadmap. Ethereum developers are currently planning a release in March 2023. The Shanghai version addresses three critical issues surrounding Ethereum. It introduces changes in the EVM object format (EOF), Beacon Chain withdrawals, and L2 gas fee reduction.

Crypto	Price	24h change	Market cap	Action
ETH Ethereum	-- --	--	--	Trade\|Convert
LDO Lido DAO	-- --	--	--	Trade\|Convert
BETH BETH	-- --	--	--	Trade\|Convert
PSTAKE pSTAKE Finance	-- --	--	--	Trade\|Convert
SD Stader	-- --	--	--	Trade\|Convert

FAQ

What will change after Ethereum Shanghai Upgrade?
After the Ethereum Shanghai upgrade, ETH and its reward withdrawals are possible for investors staking on the Beacon Chain. With withdrawals allowed, the upgrade could unlock a significant 23 billion USD valued ETH staking with the POS consensus mechanism. This upgrade also includes multiple Ethereum Improvement Proposals (EIPs) that will optimize the Gas fee schedule.
How will Ethereum Shanghai Upgrade affect me?
Once the upgrade is completed, withdrawals of staked ETH are allowed. Due to some ETH investors adopting a wait-and-see approach regarding withdrawal restrictions, as of writing, only ~14% of all ETH tokens are staked. In contrast, L1 has an over 40% ETH staking ratio. If more investors are going to stake ETH after the Shanghai Upgrade, most of them will select liquidity-staking derivatives. Because the liquidity-staking derivatives could provide earnings while being used in the entire DeFi world.
Why Ethereum Shanghai upgrade could supercharge liquid staking derivatives?
Ethereum has a low staking ratio compared with other public chains. The staking ratios of others are around 60–80%, so there will be lots of room for ETH staking ratio improvement. Now, other main public chains usually have a high staking ratio because of high annualized yields. This may cause a devaluation of staking tokens. Now ETH is experiencing a period of deflation after The Merge. The Ethereum ecosystem’s continuous prosperity and development makes Ethereum staking more sustainable and attractive to institutional investors. Some selected ETH projects are worthy of your attention: Lido, Rocket Pool, StakeWise, SSV, and FXS.