Binance has announced that post ETH Shapella upgrade, it may take weeks (roughly 15 days) to process ETH unstaking requests. This is because of the limitations of the Ethereum Network which has set a specific redemption quota for the exchanges.
This announcement came after a day of the launch of the Shapella upgrade.
Withdrawal to begin from April 19
Binance also announced that users will be able to redeem their locked ETH funds starting from April 19. The amount of time required for the withdrawal is driven by the total number of withdrawal requests placed by the staking participants and also the response from the Ethereum network.
There have been quite a large number of withdrawal requests on the very first day of the upgrade. The approximate figures stand at 3,00,000 partial withdrawal requests and 20,000 full redemption requests. Excess withdrawal pressure also indicates the possible reason for the delay.
Binance has clearly stated to its users that once they enter the request for a withdrawal, they cannot reap the benefits of staking rewards.
Ethereum surpasses $2k after the upgrade
Post the Shanghai upgrade, ETH reached $2.1k after gaining about 10% in 24 hours, making it a strong competitor to its rival Bitcoin. There was doubt among people that post the upgrade, Ethereum’s feature that allowed users to withdraw the staked coins would lead to mass sell-off but the situation seems to be the opposite and the price is seen to go further above.