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Ethereum News: Shapella/Shanghai Upgrade – Ethereum Burns Grows

Ethereum 2.0

Shortly after updating the Ethereum blockchain with the Capella and Shanghai update, changes to the blockchain are already visible. Fears that the updates will lead to widespread sales have not been confirmed.

Currently, deposits seem to outnumber withdrawals and Ethereum’s burn rate is also increasing. This stacks up well against ETH inflation.

Deposits sometimes exceed withdrawals

About a week after the Ethereum blockchain was updated with the Shapella upgrade, withdrawals can be made for the first time since 2020. Meanwhile, however, the deposits again exceeded the withdrawals.

Almost $35 billion worth of ETH is being staked on it. Despite many fears of massive price volatility, nothing serious has happened to Ethereum.

On several days during the last week he stood around 92,000 ETH on deposit side against withdrawals of 65,000 ETH. That makes one positive balance about 27,000 ETHie a sum of approx 46 million euros.

After the activation of Shapella (Shanghai + Capella), this represents the recovery to a positive development, which is expected to continue in the coming months.

Since the The upgrade was activated on 12 April at block 6209536 approximately 1.08 million ETH were withdrawn. During the same period, however, Deposited less than 600,000 ETH, resulting in a net negative stake balance of approximately 400,000 ETH. This was expected and should ideally be reversed in the future.

Currently, the price of Ether, like the rest of the crypto market, has fallen below the $ 2,000 mark again. But those price movements are unrelated to Shapella’s upgrade, at least not in part. More than 90% of all stakeholders do not want to sell their coins at the moment.

Crypto exchanges withdraw ETH in part because of SEC

who has Ethereum Staking Deployment If you want to get it back, you have to join a queue. This is gradually processed by the blockchain. Since this data can also be seen in the blockchain, it quickly becomes clear that the withdrawals are mainly done by the central crypto exchanges.

Binance, Kraken and Coinbase are withdrawing from Ethereum, but this is largely due to anger with the United States Securities and Exchange Commission, which is acting against these crypto exchanges. The SEC is currently engaged in various court and pretrial proceedings, including against Coinbase.

This is the impact of Gary Gensler’s authority against crypto companies. Many politicians now view the tough approach. Because of these uncertainties, customers withdraw their bets or move to decentralized exchanges.

This shows that customers also recognize the benefit of the blockchain here and do not give up when it comes to central exchanges which is always in danger of being slowed down by authorities.

Decentralized Exchanges are not subject to these problems. Additionally, decentralized exchanges enable higher returns.

From various sources (Nansen for example) it quickly becomes clear that currently withdrawing ether is not validated, but the reward received. Once the current flow of withdrawals and moves between exchanges is complete, the status should return to normal. At least that’s how it looks at the moment.

Ethereum is burning more ether from Shapella

Since Ethereum was updated with the Shapella update, the amount of Ether has been decreasing at about a rate of 0.502% per year. This is almost double the last 30-day burn rate and much higher than the post-enabling rate of 0.134% per year.

Ethereum has burned about 11,600 ETH in just under seven days, which is worth about $20 million at current prices.

Finally, the Ethereum blockchain, and therefore ETH, plays an important role for new cryptocurrencies built on the blockchain. It is the latest example of such coins AiDoge. The new meme coin uses AI technologies and relies on the Ethereum blockchain.

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