Ethereum Prepares Testnet for ETH Staking Withdrawals
To test the upcoming Shanghai hard fork scheduled for March, Ethereum developers are launching a testnet that will simulate ETH staking withdrawals.
Update on February 7, 2023:
Around 10:00 PM on February 7, Ethereum developers announced the successful testing of the Shanghai hard fork on the Zhejiang testnet, including the rollout of the ETH staking withdrawal feature.
And we hit Shapella on Zhejiang testnet. Withdrawals and BLS changes are already included in the first slot at 43200 (epoch 1350). Full and partial withdrawals both processed. BLS changes are also processed. For more info on withdrawals check out: https://t.co/AHMt2x1AbV pic.twitter.com/SlgpaOQx6f
— Barnabas Busa (@BarnabasBusa) February 7, 2023
In February and early March, Ethereum will further test the Shanghai upgrade on two additional testnets, Sepholia and Goerli, before deploying the hard fork to the mainnet in mid-March.
Original Post:
Ethereum developers will launch a new testnet called Zhejiang, which will allow users to test ETH staking withdrawals set to debut in the Shanghai hard fork next March.
This testnet will be deployed on the evening of February 1, enabling users and projects to deposit ETH and test the hard fork on February 7, before officially activating the staking withdrawal feature.
The Zhejiang public testnet is going live tomorrow (1st of Feb 15:00 UTC, 2023). Shanghai+Capella will be triggered 6 days later (at epoch 1350). You will be able to deposit validators, practice BLS change and exit without risk. All links are here: https://t.co/XNlsDIG0cm pic.twitter.com/sKKDJmolt2
— Barnabas Busa (@BarnabasBusa) January 31, 2023
True to their previous commitments, the Ethereum team is working diligently to bring the ETH staking withdrawal feature to the mainnet as soon as possible. Initially scheduled for about a year after the Merge upgrade—around September 2023—the feature has been moved up to March.
In January, Ethereum launched a new testnet for Shanghai and successfully conducted a dry run of the hard fork without encountering major issues.
As previously explained by Coin68, Shanghai has garnered significant attention because it will include EIP-4895, which allows those who have staked ETH in the Ethereum 2.0 contract to withdraw their funds and staking rewards. Ethereum opened the ETH 2.0 staking contract in November 2020 in preparation for the Merge. As of this writing, over 16.2 million ETH, worth $25.6 billion, is locked in the contract.
ETH Locked in the Ethereum 2.0 Staking Contract as of February 1, 2023. Source: Beaconcha.in
ETH prices showed a notable recovery in January 2023, increasing from $1,196 to $1,679, or 40%. However, in recent days, Ethereum's price has stalled as market attention has shifted towards altcoins.
1D Chart of ETH/USDT on Binance as of 8:40 AM, February 1, 2023
The unlocking of ETH staking by Ethereum has also spurred interest in Liquid Staking projects—allowing investors to lock ETH while receiving a representative token for continued DeFi participation, such as Lido (LDO) and Rocket Pool (RPL). LDO's price surged nearly 200% in January, while RPL increased by 90%.
In January, increased activity on the Ethereum network led it to enter a deflationary state, with the amount of new coins created from staking being lower than the amount burned through transaction fees, thanks to EIP-1559.
