Ethereum Shanghai upgrade could benefit liquid staking providers and cement ETH’s layer-1 dominance
Ethereum’s Shanghai upgrade is set to unlock a trove of staked Ether and possibly benefit other staking protocols that offer lucrative yields. Ethereum’s upcoming Shanghai upgrade will allow users to withdraw staked Ether (ETH), increasing the network’s liquid ity and competitiveness while also boosting its staking ratio closer to its competitors. The Shanghai upgrade is a hard fork of Ethereum tentatively scheduled to occur in March. It implements five Ethereum Improvement Proposals, the headliner being EIP-4895, which allows users to withdraw their locked-up tokens representing staked Ether from the Beacon Chain. The ability to withdraw staked Ether could increase market liquid ity and make it easier for users to access their funds. Ethereum liquid staking platforms, which largely emerged to alleviate the blockchain’s prohibitive lock-up and staking requirements, could also benefit from the upgrade . Since the Ethereum network moved to proof-of-stake (PoS) in September 2022, i...