- Ethereum developers Tim Beiko and Parithosh took to Twitter to share the successful Sepolia Shapella upgrade.
- The Shanghai upgrade, expected in March, will fully transition Ethereum to proof-of-stake and enable the withdrawals of staked Ethereum.
The Sepolia testnet of the Ethereum blockchain has completed a successful upgrade that replicates the forthcoming Shanghai hard fork scheduled to occur on the mainnet in March. The upgrade, named “Shapella” as a combination of the Shanghai and Capella hard forks, was effectively integrated into the testnet on February 28th.
The name “Shanghai” refers to a component of the execution layer client, while “Capella” is the name of an upgrade on the consensus layer client. One of the significant changes is that validators can now withdraw their staked Ether (stETH) from the Beacon Chain to the execution layer.
Previously, validators needed to stake 32 Ether to validate transactions on the Ethereum blockchain, but now they can withdraw rewards beyond 32 ETH and continue to validate. Alternatively, validators can choose to withdraw all 32 ETH and their rewards and stop validating altogether.
The upgrade will be released on the next Ethereum Goerli testnet in March, before the Shanghai fork is implemented on the mainnet.
The March upgrade will fully transition Ethereum to the Proof-of-Stake (POS) consensus Mechanism.
Terence.eth, an Ethereum developer working on the Arbitrum project, reported that some of the Prsym validators had not been updated to the latest client releases, leaving them offline. Terence.eth, on the other hand, anticipates that these validators will be operational again soon.
The leader of the Nethermind Ethereum client team, Marek Moraczynski, announced on Twitter that Ethereum Foundation developers had successfully activated Sepolia Shapella, which is most likely an update or improvement to the Ethereum network’s infrastructure.
Additionally, the Ethereum Foundation has announced plans to shut down the Goerli testnet after the Shanghai upgrade and will replace it with a new testnet called Holli or Holesovice, which is expected to launch in September of this year.
The price of Ethereum is currently $1,627 and has remained largely stable above the $1,600 mark. The past 24-hour range’s lowest and highest prices were $1,615 and $1,662, respectively. Additionally, there has been a 15% increase in trading volume over the past day.
Breakfast News 🥘
Sepolia, a second Ethereum test network (testnet), replicated staked ether (ETH) withdrawals successfully today, bringing the Ethereum blockchain closer to its eagerly awaited Shanghai Upgrade. #CryptoNews #Ethereum pic.twitter.com/PzGBnb0T6f
— The Bull's Journal (@thebullsjournal) February 28, 2023
However, there is a sense of caution in the market as a result of worries about potentially hardline remarks from the U.S. Federal Reserve, which may have stalled Ethereum’s price movements. Despite there being some downward pressure on the entire cryptocurrency market, a turnaround is anticipated for next month.
The Ethereum network is getting updates to increase its functionality, scalability, and security, which might draw in more users and developers. Adoption, however, is subject to a variety of variables, including market sentiment, application accessibility, and regulatory environments. As a result, even though the upgrade might ramp up the adoption of Ethereum, other factors will be just as important in determining its success.