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Binance AnnouPostnces -Shapella ETH Withdrawal Requests May Take Weeks

Binance, a cryptocurrency exchange, said on Thursday, April 13th, that Ethereum withdrawal requests might take several weeks to process. This statement comes just one day after the Shapella update was made available on the Ethereum mainnet.

One of the most awaited events in the crypto sector for 2023 is Ethereum’s Shapella update, which now allows ETH validators to withdraw their locked cash. However, owing to the Ethereum network’s processing limits, Binance indicated that it must establish a daily redemption quota for each user.

Binance, the world’s largest crypto exchange by trading volume, stated on its website on April 19th that its users would be able to redeem their frozen ETH holdings. The corporation also stated in the Thursday notice that unstaking requests might take anywhere from 15 days to several weeks to accomplish.

The length of time it takes to fulfill an ETH unstaking request is governed by the total number of ETH withdrawal requests made by staking players and the Ethereum network, according to the post. As previously stated, the Ethereum blockchain’s processing restrictions played a significant impact in Binance’s ETH redemption structure and timescale.

Furthermore, Binance stated that BETH tokens (Binance’s tokenized form of staked ETH) held in pending withdrawal requests will not be eligible for ETH 2.0 staking incentives. Furthermore, after a withdrawal request has been made, users cannot rescind it.

There are presently over 400,000 partial withdrawal requests and approximately 30,000 full withdrawal requests, according to data from a rated network. However, it is worth mentioning that a major number of these withdrawals are forced, since US-based cryptocurrency exchange Kraken was compelled to suspend its staking business following a $30 million settlement with the SEC.

The much-awaited Shapella update went live on the Ethereum mainnet on Wednesday, April 12th, at 10:27 p.m. (UTC). The hard fork involves changes to the network’s execution layer (Shanghai) and consensus layer (Capella). Above all, it allowed ETH validators to withdraw their staked cash from the network.

There was concern that the new capacity of validators to liquidate their staked ETH would cause the value of Ethereum to collapse in anticipation of the update. However, contrary to popular belief, CryptoQuant forecasted that the bearish pull following the upgrade would be small. And that has been the case for the most part since Shapella went live on Wednesday.

In reality, ETH surpassed $2,000 on April 13th, and has subsequently reached the $2,100 price barrier many times. As of this writing, ETH is trading at $2,090, up more than 10% in the last three days. 

 

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