As it is known, Ethereum switched to the Proof of Stake consensus model last September. With the opening of ETH withdrawals on April 12, the transition process will be completed.
Ethereum Withdrawals Will Take Weeks To Complete According To Analysts
This process starts next week but could take weeks to complete, according to an analyst from cryptocurrency data platform Nansen.
Following the Merge event in September, Ethereum's transformation will end with the launch of the Shanghai upgrade on April 12, along with another upgrade called Capella.
However, Ethereum users may not be able to withdraw their funds immediately or all at once. According to Andrew Thurman, a data analyst at Nansen, the length of the withdrawal queue can result in users having to wait several weeks to withdraw their funds.
“When you look at the basics, whatever impact the withdrawals have had on the market, it will show up within weeks, not days,” Thurman said.
Thurman believes that "the promise of value delivered by projects like the Lido will change slightly, but ultimately not significantly," following the Shanghai upgrade.
“Being able to use your staked ETH as collateral in DeFi is extremely important for anyone pursuing a complex interest or yield strategy,” Thurman said.
“So these tokens still definitely have a role to play. However, I think liquidity has become a little less important as withdrawals are open.”
Thurman described Ethereum's two-year proof-of-stake journey as "an important event in the history of open source software."
P2P.org CEO Alex Esin said in a statement that he "does not expect to see a huge withdrawal boom" following the upgrade.
With the update that will take place on April 12, 18 million ETH tokens will be unlocked gradually.
*Not investment advice.