By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Request a call

Please enter your corporate email address.

I would like to know more about:
Submit
Thanks
We'll be in touch with you soon!
Industry

Date

19.3.2023

Written by

info@scrypt.swiss

Preparing for the Shapella Upgrade: Our Actions and Market Impact

Date

19.3.2023

Written by

info@scrypt.swiss

Written by

Date

19.3.2023
Download PDF

Upcoming Shapella Upgrade

As the Ethereum ecosystem continues to evolve, industry participants are preparing for the upcoming Shapella upgrade on the Ethereum Mainnet. Scheduled for April 12, 2023, this technical upgrade will enable validators to withdraw their stake back to the execution layer and introduce new functionality to both the execution and consensus layer.

In addition, Lido plans to enable withdrawals for stETH in May, which has sparked discussions about the potential impact on the market. Some believe that the increased liquidity from staking rewards may lead to short-term uncertainty and bearish price action, but any impact may be muted by macro factors such as strong BTC dominance and CPI data being released on the same day. Others hold a bullish view, stating that the staking ratio will jump post-Shapella, which will pump ETH with reduced supply. However, it is important to note that once the staking ratio increases, the staking yield goes down, and the network needs to burn more gas to keep ETH deflationary.

With this in mind, SCRYPT is taking proactive measures to protect its clients during the Shapella upgrade. To avoid any potential issues,SCRYPT will pause ETH (and ERC20) deposits and settlements from April 12th, 20:00 UTC. Trading services with execution capabilities will continue to be fully operational. This will ensure that any deposits are received and credited in clients’ accounts before the cut-off time.

In the long term, the Shapella upgrade and the enabling of stETH withdrawals will benefit the Ethereum ecosystem and enable other interesting use cases for staked ETH, such as restaking. It is essential to remain cautious and monitor the situation closely, especially in the short term.

SCRYPT will continue to provide updates and communicate any further developments to its clients to ensure a smooth transition during this period.

Learn more: www.scrypt.swiss | info@scrypt.swiss

Media contact: farah@scrypt.swiss

Follow us on LinkedIn: SCRYPT  


Related

Company
Product
30.11.2023

SCRYPT Powers Finnova and Wyden’s Integrated Digital Asset Trading and Custody Service

All
Company
Product
24.1.2022

SCRYPT Starts Streaming Liquidity to Finery Markets, an Institutional Multi-Dealer Execution Venue

All
Industry
13.4.2021

All The Ways the Coinbase Stock Listing may Disrupt the Crypto Market

All