Shanghai Upgrade Drives 25% Boost In ETH Staking Activity

The Shanghai upgrade was one of the most anticipated blockchain events of 2023, expected to introduce a higher level of speed and scalability to the Ethereum network.

However, the most important feature of the Shanghai upgrade was allowing validators and stakers to finally withdraw their staked ETH from the Ethereum Beacon Chain.

To explain, the Beacon Chain was created to aid the smooth transition of Ethereum from a Proof-of-Work consensus model to a Proof-of-Stake mechanism, i.e., ETH 2.0. Since its launch in 2020, many users have been staking their ETH tokens on the Beacon chain to facilitate network security and earn rewards. Albeit, those assets and the rewards they generate were inaccessible until after the Shanghai upgrade in 2023. 

Prior to this network upgrade which occurred on April 12, 2023, the total number of staked ETH stood at 18.1 million, according to data by Dune Analytics.

Four months later, the token analytics website Token Unlocks has offered more insight into how the Shanghai Upgrade has impacted the ETH staking activity so far.

Shanghai Upgrade Sparks Confidence In ETH Staking 

On August 10, Token Unlocks posted on social media platform X that the Ethereum Shanghai upgrade has yielded a positive result on ETH staking, with a significant rise in demand for LSD protocols – a liquid staking aggregator project designed to promote maximum yields for ETH stakers.