In a new announcement, Binance took a big step forward for the crypto market by launching ETH withdrawals, which were released with the Shanghai rise. But could this step cause the ETH price to drop?
Binance announces: Ethereum withdrawals begin
The world’s largest crypto exchange has started the process of converting BETH balances to ETH of users who staking ETH 2.0. After the Ethereum Shanghai (Shapella) update last week, it was announced that users could exchange their staked ETH a week later.
Binance reported that it has enabled withdrawals for ETH 2.0 staking in a tweet shared on April 19. Users who stake Ethereum on Binance can exchange their ETH in a 1:1 ratio against their BETH balance on the ETH 2.0 staking page.
#Binance has enabled the withdrawal function for ETH 2.0 staking.
For more details on how to redeem $ETH with your $BETH holdings, read our previous announcement below.
— Binance (@binance) April 19, 2023
Pay attention to these
Users will not be able to withdraw their request after requesting a withdrawal. Also, due to transaction restrictions on the Ethereum network, staked ETH withdrawal requests can take from 15 days to several weeks. Users will be able to track the expected distribution date from Binance when requesting a withdrawal.
According to a new update from Binance customer support, users will be able to receive their ETH faster due to shorter transaction times: “We completed the ETH 2.0 withdrawal process ahead of schedule. Although initial estimates said it could take anywhere from 15 days to several weeks, we got the process done in less time! so our users can access their funds on time.”
A bearish risk for ETH?
The Shanghai surge implemented on the night of April 12 released ETH to a total value of $35 billion locked on platforms like Lido and Binance. According to TokenUnlocks data, more than 1.08 million ETH has been withdrawn from Beacon Chain so far. These ETHs were staked in December 2020 and 598k ETH was deposited back into Beacon.
In total, there are $1.87 billion worth of pending withdrawal requests, corresponding to 945.82 thousand ETH. While the number of validators was 487.93 thousand, only 27.89 thousand validators requested full withdrawals. In terms of price, ETH is down 6% on the day. The downward momentum was due to the Bitcoin correction. So far, there has been no major selling pressure from the ETHs that have been released.
As Kriptokoin.com, we have included the analysis of the selling pressure that may be caused by the Shanghai rise in this article.
Binance launches withdrawals, watch out for Lido on this date
Lido Finance, as a leading platform for liquidity staking on Ethereum, has announced that staked ETHs can be withdrawn in May. Lido allows users to earn returns by staking their ETH as well as easily trading these tokens.
An update on Lido Ethereum withdrawals:
TL;DR:
– Lido DAO is currently undertaking 7 V2 audits.
– Codebase is very close to being finalized. All major fixes have been merged.
– 4 week Goerli testnet will commence next week (c. March 20th).
– Mainnet upgrade expected mid May.— Lido (@LidoFinance) March 14, 2023
However, there are certain restrictions on the withdrawal of ETH staked by Lido users, and Lido is preparing to lift these restrictions. This step will allow more liquidity to be released on the Ethereum network and allow users to manage their staked ETH more flexibly.
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