The highly-anticipated Shapella Upgrade to the Ethereum network is set to take place in just two days, with the update one of the most integral developments to the Ethereum blockchain since the Merge, which took place in September of last year.
Unlocking $30 billion worth of staked ETH
The Shapella upgrade will open up a multitude of advantages to the Ethereum blockchain, one of which is being able to extract assets from The Beacon Chain. This will lead to the unlocking of an eye-watering $30 billion worth of staked ETH, creating a large amount of liquidity.
Lowering gas fees for developers
One of the standout features of the Shapella upgrade is the expected decrease of gas fees for developers. This could provoke a surge in the number of developers working on the platform, since they would no longer need to spend as much money to create and deploy smart contracts and decentralized applications.
The liquid staking industry to benefit
The Shapella upgrade is anticipated to bolster the growth of the already burgeoning liquid staking industry. At present, liquid staking makes up roughly half of all staked ETH, with this percentage expected to surge once the upgrade is activated. This will deliver a more streamlined and cost-effective way for users to reap staking rewards, while still retaining access to their ETH for other purposes.
A ‘game-changing’ developmental milestone
On April 10, Chen Zhuling, the Founder and CEO of RockX, a global blockchain node network providing non-custodial staking and API access nodes to stake and build on all major Proof-of-Stake blockchains, commented on the upgrade, noting that it is a ‘game-changing’ developmental milestone for Ethereum, pushing the blockchain towards the aim of increased scalability and efficiency.
In the long-term, the Shapella Upgrade is predicted to reduce transaction costs, better security and efficiency of smart contracts, and position Ethereum as the benchmark yield for cryptocurrency.
In conclusion, the Shapella upgrade is likely to be yet another transformative development for the Ethereum network, one that will bring countless benefits and inviting more users and investors to the network.