Blockchain News

Ethereum Shanghai Hardfork: New Testnet Launches on the Network as these Metrics Soar

With the deployment of a test net, the Ethereum [ETH] network has moved one step closer to the Shanghai hard fork. According to reports, the Zhejiang test net will be a forerunner to the final deployment. It will allow network users to test features that will be included in the fork in the future.

An Ethereum developer said on January 31 that a public test net would be available on February 1. It would allow withdrawals from the Beacon Chain. Users will also be able to test staked Ether withdrawals, which are part of Ethereum Improvement Proposal-4895 (EIP), which will be implemented in the next Shanghai hard fork.

A practice run of the network’s anticipated Shanghai and Capella enhancements will begin six days after the testnet goes online.

Any Ethereum user can try withdrawing staked ETH using the Zhejiang public testnet. All of this functionality will be available when the Shanghai update goes live. The Ethereum Foundation’s developers believe the Shanghai hard split will take place in March 2023.

The developers plan to deploy EIP-4844 as the next upgrade after Shanghai in May or June 2023. EIP-4844 has the potential to significantly reduce transaction costs and increase the scalability of layer-2 rollups on Ethereum by a factor of 100.

According to Glassnode, staking in Ethereum has gradually increased over the last several weeks. As of the time of writing, the total amount of ETH staked had topped 16 million. According to Glassnode, there were also over 500,000 validators present.

The total number of validators on the network rises in proportion to the amount of ETH staked.

Given the surge in Ethereum staking, examining the fraction of legitimately lucrative bets was vital. According to Dune Analytics statistics, a few ETH profited out of the whole amount deposited. The previous ETH staked was also reflected in the profit percentage.

According to the graph, 35.5% of the ETH invested was lucrative, while 64.5% was submerged. Furthermore, there was a high likelihood of a link between the price and profitability of staked ETH.

However, the observed daily timeframe chart suggests that ETH has been under intense selling pressure. As of this writing, it was trading at around $1,580, with sell pressure dominating the trading session and a loss of less than 1% observed.

Despite the pressure, the asset’s price has remained stable at roughly $1,500. The $1,500 area might be the next support level, but a breach could send it farther down.

The testnet’s success or failure will determine how it affects Ethereum and ETH staking.


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