Ethereum is one of the top cryptocurrencies in the crypto world, and anything that happens will directly or indirectly impact the overall market. The news that Ethereum will release its hard fork, Shangai, and stacked Ether will be released in March will probably improve the prevailing sentiments about the market. The news came to light after the Ethereum Core developers’ meeting on Dec. 8, 2022.
Stacked Ether is one of the most anticipated crypto tokens. They are the units of Ether that are stacked in a chain called a “Beacon Chain .In order to make Ethereum faster and cheaper to use, the network is upgrading to a new version. In the upgrade, Beacon Chain is used as a testing environment.
Stacking is an integral part of crypto trading in which investors stack their tokens and receive recompenses later on in the form of interest like-yields. This is called proof of stake or proof of work, and sometimes it is called mining.
Lido Finance is being used by investors for stacking their stETH. The platform lets you stack as many tokens as you like, but their withdrawal is not possible until the new upgrade. The total close token circulation is more than 4.48 billion dollars.
Unstacking the stacking
The stacked stETH will be available for withdrawal after the release of a code known as the Ethereum Improvement Protocol or EIP 4895. This upgrade will allow the users to withdraw their stacked Ether token. The users will be able to withdraw Ether alongside any reward they get for their respective stacking. According to the official of Ethereum, the upgrade is designed to “simplify and maximize focus on a successful transition to proof-of-stake.”
Introducing data blob transaction
The developers announced that with this hard fork, a new type of data blob transaction will be introduced to the system. It was first introduced by the developers’ on Feb. 21, 2022. But its upgradation will make things faster than ever. Rollups can be improved up to 100x if large portable bundles containing cheaper data in Ethereum are introduced.
stETH is not in the news for the first time. It has gotten the attention of many investors in the past. When Terra Luna crashed this May, many investors feared that a similar thing would happen to stETH too. The price of Ether began to shrink, and many investors took the exit. On top of that, crypto lender Celsius halted accounts from withdrawal, making things sorer. Celsius used to take Ether and stack it in Lido Finance.
However, this was not the only problem for the industry. The Federal Reserve increased the interest rate ensuring more investors leave the crypto industry as a whole. This saw a great decline in the stacking of the stETH, and people started doubting the potential of stacking.
News about the 3AC company’s financial situation made the situation worse. It was believed that the company was in big trouble and it was going to sell all its stETH holdings to rescue its
But despite all these things, the seETH survived, and soon investors will be able to withdraw their stacks and rewards, respectively.
What is next for Ethereum?
What is next in the card of the Ethereum platform after the announcement of Shangai? Well, the developers will now work on the test the code. The developers will introduce a new testnet after the Shangdong tesnet (which was denigrated). The expected date for the new public testnet for Shangai is 15 or 16 Dec 2022.