The long-awaited update to Ethereum called “Shanghai” came out on Wednesday night as planned. With this update, users can withdraw ETH that they have already staked on the network, which was impossible before.
The update also changes how withdrawals are staked, so users no longer have to send in specific withdrawal requests or pay transaction fees. With this new method, withdrawal requests don’t have to compete with each other for space on the execution layer block.
But the significant change made it hard for many users to withdraw their staked ETH after the big update.
Ethereum Withdrawal Queues Total $1.4 Billion
According to information from Nansen, users had to wait for more than $1.4 billion to get their money out on Thursday. The long-awaited Shapella upgrade was supposed to free up ether worth more than $30 billion.
No one also said anything about the problems with withdrawing money from the Ethereum Foundation. Martin Lee, a Nansen analyst, emailed Reuters that the Ethereum blockchain can handle 1,800 validator withdrawals per day or 57,600 ether.
Lee also said, “In an extreme scenario, if there are no limits, and a large majority of validators exit, the Ethereum network would be vulnerable to attacks and bad actors.”