Back in April of this year, Ethereum launched the Shanghai update, which focused on four Ethereum Improvement Proposals (EIPs): EIP 4895, 3855, 3860, and 6049. The biggest of these was 4985, an update allowing stakers to unstake their Ethereum. It has been over 2 years since the Merge — when Ethereum switched from a POW to a POS model. But due to this update, more than 16 million ETH have been freed up, allowing this ETH to be withdrawn. This completed Ethereum’s move to a POS model, as now stakers can unstake their Ethereum. The market state of Ethereum immediately after the update looked positive—a 6% increase in the value of Ethereum. Although speculators presumed the market state would be volatile, Ethereum saw no substantial drop or rise after the update.
The other EIPs generally focused on lowering gas fees in various ways. This resulted in lower gas fees for both developers and users through changes to the smart contracts. Other updates planned to be released in this Shanghai upgrade were postponed until later updates. Overall, this update is positive for the Ethereum chain as it reduces traction and allows greater freedom in staking.
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What Is the Ethereum Blockchain’s Shanghai Hard Fork, and Why Does It Matter?
