The test schedule for the upcoming Ethereum (ETH) blockchain Shanghai upgrade has been revised. Following the successful launch of Shanghai on the public testnet Zhejiang (Zhejiang Province) on the 8th, the plan is to launch Shanghai on both Ethereum public testnets in the near future.

According to core developer Tim Beiko, Sepolia is set to be integrated into Shanghai on February 28th and will be deployed on the Goerli testnet by mid-March. The Shanghai implementation on the mainnet is expected to take place around the end of March or April, but any bugs found during the process may cause adjustments to the schedule.

Cryptocurrency exchanges and staking pools, among other staking service providers, will be able to test their ETH withdrawal capabilities for staking on these public testnets prior to going live.

Impact on Ethereum Staking
Staking is a process where rewards are earned by holding a certain amount of virtual currency for a specified period. By supporting the blockchain’s operation, stakers receive compensation in the form of rewards.

The Ethereum blockchain currently supports staking, but it is not yet possible to withdraw staked Ethereum or rewards. This withdrawal feature will be available in Shanghai, and Ethereum developers are continuously testing it.

According to the official website, there is over 16.4 million ETH (equivalent to about 3.5 trillion yen) currently staked. The implementation of the withdrawal feature is expected to create some selling pressure in the short term, but also stimulate demand for staking.

Data provider Staking Rewards shows that Ethereum’s staking rate is around 14%, lower compared to competing blockchains like Solana (SOL) and Avalanche (AVAX) with over 60%.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, a cryptocurrency index fund management firm, stated that “the proportion of investors seeking ETH staking will explode if the indefinite lockup is lifted.” The firm predicts a minimum increase of 50% in the staking rate of ETH in circulation by 2020.

Investment bank JP Morgan highlights that 95% of Coinbase’s retail investors may participate in Ethereum staking after the Shanghai upgrade. Coinbase’s annual revenue is currently 225 million dollars (equivalent to 29.5 billion yen), and it is estimated to grow to 545 million dollars (70 billion yen) with the upgrade.”

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