The Ethereum blockchain’s recent Shanghai upgrade has prompted holders of its native token, Ether, to start withdrawing the cryptocurrency.
Ethereum (ETH) price surged to around $2,000, despite analysts saying the withdrawals were in line with expectations.
The upgrade allows validators to withdraw their staked Ether, and data from Token Unlocks shows that over 53,320 Ether ($102 million) had been withdrawn as of noon in Hong Kong, with another 558,4420 held by 268,820 validators awaiting withdrawal.
According to CoinMarketCap data, Ether was trading at $1,980, up 5.8% in the past 24 hours. Although some market observers had predicted a massive sell-off, experts believe that the situation is far from it.
“New staking deposits can be expected to increase in the coming days and weeks,” said Charlie McGlynn, head of decentralized finance trading at XREX.
