<p>The surge in outflows of staked ether seen after <a href="https://www.theblock.co/post/226036/ethereum-shapella-upgrade-goes-live">Ethereum's Shapella upgrade</a> enabled withdrawals for the first time has stopped after less than a week, with traders once again staking more ether than they're unlocking. </p> <p>Over the past 24 hours, nearly 95,000 ETH was deposited and just over 27,000 ETH was <a href="https://query.nansen.ai/public/dashboards/Hk93n66vsO0uvycfui8ypF2xcpNhpraxfwX5AWZJ">withdrawn</a>, creating a net positive flow of almost 68,000 ETH, according to data provider Nansen. </p> <div id="attachment_226794"class="wp-caption aligncenter" style="max-width: 1894px;"><img class="has-caption wp-image-226794 size-full" src="https://www.tbstat.com/wp/uploads/2023/04/Screenshot-2023-04-18-at-11.35.43.png" alt="Nansen chart illustrating ethereum staking deposits and withdrawals." width="1884" height="985" /><p class="wp-caption-text"><span style="font-size: 8pt;">Ethereum staking deposits have recently exceeded withdrawals. Source: Nansen</span></p></div> <p>Even so, the total amount of ether pending withdrawal remains just under $2 billion in value at nearly 927,000 ETH. That's down approximately $1 billion from its post-Shanghai high of <a href="https://www.theblock.co/post/226546/ethereum-pending-withdrawals-bullish-event-shapella">over $3 billion</a>.</p> <p>Daily, $61.6 million in ether is being <a href="https://token.unlocks.app/ethereum-shanghai">withdrawn</a>, according to data from token.unlocks.</p> <div id="attachment_226796"class="wp-caption aligncenter" style="max-width: 1920px;"><img class="has-caption wp-image-226796 size-full" src="https://www.tbstat.com/wp/uploads/2023/04/Screenshot-2023-04-18-at-11.38.00.png" alt="token unlocks chart illustrating ether withdrawals" width="1910" height="994" /><p class="wp-caption-text"><span style="font-size: 8pt;">Ether withdrawals have generally trended downward. Source: token.unlocks</span></p></div> <h2>'A bullish event for Ethereum'</h2> <p>Early outflows of staked ether have been slower than expected, according to Grayscale's Matt Maximo and Michael Zhao.</p> <p>Though the analysts claim that withdrawals may continue to grow in the short term, they also noted that withdrawals do not necessarily indicate an intent to sell. Instead, users may rotate their withdrawn ether to different validators or staking providers.</p> <p>"We believe that the short-term price impact from the Shanghai upgrade will be less severe than initially anticipated, attributable to the lower number of ETH withdrawals and full exits," they added. "Looking ahead, we think this is a bullish event for Ethereum, as reducing staking risks could boost the baseline demand for ETH."</p> <p>Indeed, the price of ether has broadly increased alongside Ethereum's Shanghai upgrade. It is currently trading above $2,100.</p> <div id="attachment_226797"class="wp-caption aligncenter" style="max-width: 2678px;"><img class="has-caption wp-image-226797 size-full" src="https://www.tbstat.com/wp/uploads/2023/04/ETHUSD_2023-04-18_11-44-36.png" alt="trading view chart showing the price of eth" width="2668" height="764" /><p class="wp-caption-text"><span style="font-size: 8pt;">The price of ether has increased alongside Ethereum's Shapella upgrade. Source: TradingView</span></p></div> <h2>What is Shapella?</h2> <p>The Shapella update for Ethereum — the first significant modification since the protocol shifted away from the energy-intensive proof-of-work consensus mechanism with last year's Merge — was activated shortly before 6:30 p.m. EDT on April 12 at block height 6209536.</p> <p>In addition to allowing for the withdrawal of staked ether, it also optimized gas fees for certain transactions.</p> <p><iframe frameborder="0" height="420" src="https://embed.theblockcrypto.com/data/on-chain-metrics/ethereum/beacon-chain-deposits-withdrawals/embed" title="Beacon Chain Deposits &amp; Withdrawals" width="100%"></iframe></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>