• Coinbase is expecting a surge of staking withdrawal requests after Ethereum developers enable the functionality next month.
• With the Shapella upgrade, Ethereum users can unstake their Ether (ETH) which has been locked up since the Beacon chain launched in 2020.
• Coinbase says it could take “weeks to months” for unstaking requests to be fully processed.
Coinbase Anticipates High Demand for Unstaking After Shanghai Upgrade
Coinbase, America’s largest cryptocurrency exchange, is anticipating a high demand for staking withdrawals after the upcoming Ethereum upgrades are enabled next month. This upgrade, known as Shapella (comprised of both Shanghai and Capella), will allow users to unstake their Ether (ETH) for the first time since the Beacon chain launched in 2020.
Shapella Is Coming
In a blog post about how this upgrade will impact Coinbase’s business, they stated that it could take “weeks to months” for all unstaking requests to be fully processed. It was also noted that when these requests open up to all customers at once, they’ll be relayed to the Ethereum protocol and queued based on when they are received. Additionally, Coinbase acts as a conduit only – processing these requests on-chain with no additional fee required.
Why Now?
The reason why this feature is now available is because Ethereum recently completed its Goerli testnet upgrade on Tuesday which paved the way for Shapella’s official rollout by mid-April. This means that those who have been waiting patiently should soon be able to access their staked ETH with ease while taking advantage of any price fluctuations that may occur during this time period.
How Does This Affect Users?
The impact of this update on users varies depending on how long they’ve been staking their ETH and what type of investment strategy they’re utilizing. For example, those who have been holding onto their ETH for more than one year may find themselves in an advantageous position due to price increases over time – as well as any potential rewards earned while participating in proof-of-stake activities like validating blocks or voting on protocol upgrades/changes. On the other hand, those who are more active traders may benefit from being able to quickly move funds out of their wallets and into exchanges without having to wait weeks or months for processing times associated with traditional methods such as bank transfers or wire transfers.
Conclusion
Overall, Coinbase’s announcement regarding upcoming changes due to Ethereum’s Shapella upgrade should bring positive news for those wanting easy access to their ETH holdings regardless of how long they’ve been staked or what type of trading strategy they’re using – allowing them make quick decisions without sacrificing security or reliability