The Ethereum network has recently experienced a significant event with the successful implementation of the Shanghai upgrade. This upgrade has had a profound impact on staking trends and the wider crypto market, particularly for US-based Kraken customers and users of other leading exchanges such as Coinbase.
Following the Shanghai upgrade, Ethereum stakers now have the long-awaited option to withdraw their funds from the mainnet. This feature has been highly anticipated since the launch of staking in December 2020, and its introduction offers stakers increased flexibility and control over their investments.
Kraken US Staking Customers Hit Regulatory Snag
Interestingly, the Shanghai upgrade has had an unintended consequence for US-based customers of the Kraken exchange. The majority of these customers have been forced out of the staking system due to regulatory measures. Kraken had previously settled with the SEC for $30 million in February, leading to the closure of its staking operations for Americans. A small number of customers remain in the system, but most have had to withdraw.
Coinbase Emerges as Staking Powerhouse
As Kraken’s US staking customers face challenges, Coinbase has stepped up to become the largest entity with users waiting to withdraw staked Ethereum. Over 55,000 ETH is set to be withdrawn from the platform, showcasing Coinbase’s significant role in the Ethereum staking landscape.
Ethereum Staking Sees Positive Growth
Analysis of the data shows a net increase in Ethereum being staked, as more addresses deposit Ethereum than those withdrawing. At present, 97,586 ETH, equivalent to $189 million, is staked on the network, indicating a high level of confidence in Ethereum staking.
Rising Interest in ETH-Denominated Yield Opportunities
The optimism surrounding Ethereum staking is further evidenced by the growing number of users looking to benefit from ETH-denominated yield opportunities. Experts suggest that this trend not only displays a bullish sentiment but also positively impacts the asset overall. As more Ethereum is locked up for staking purposes, the amount of ETH being sold on the open market decreases, thereby contributing to the asset’s overall value and stability.