Ethereum Shanghai Upgrade Results in Massive Withdrawals by Kraken and Coinbase

04/25/2023 03:48 • Digital Disruptors • 82 views

On April 25th, according to Nansen data, Kraken and Coinbase were the top two institutions to withdraw principal after the upgrade of Ethereum Shanghai. The two institutions withdrew a total of 870688 ETHs, accounting for 78.3% of the total principal withdrawal amount.

Data: Kraken and Coinbase account for 78.3% of the total principal withdrawal after Ethereum upgrade

As per the latest Nansen data released on April 25th, it was observed that two prominent institutions, Kraken and Coinbase, withdrew a total of 870688 ETHs after the upgrade of Ethereum Shanghai. This withdrawal amount accounted for 78.3% of the total withdrawal of principal after the upgrade.

What is Ethereum Shanghai Upgrade?

Before delving into the impact of the Ethereum Shanghai upgrade on institutions such as Kraken and Coinbase, let’s first understand what the upgrade is all about. Ethereum Shanghai upgrade is a new version of Ethereum that has been designed to improve the network’s functionality and security. The upgrade aims to optimize the network’s stability and interoperability while reducing the overall transaction cost.

Impact of Ethereum Shanghai Upgrade on Institutions

The recent data released by Nansen has revealed that the recent Ethereum Shanghai upgrade has led to a massive withdrawal of principal by two of the biggest institutions in the cryptocurrency space, Kraken and Coinbase.
Kraken is a reputable cryptocurrency exchange that is known for its robust security, unparalleled transparency, and advanced trading tools. Established in 2011, Kraken has gained immense popularity among the cryptocurrency community over the years.
Coinbase, on the other hand, is a digital currency wallet provider that allows users to securely store and transact with cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The platform has an ecosystem of over 35 million users and supports over 100 countries.
As per the Nansen data, Kraken and Coinbase were the top two institutions that withdrew principal after the Ethereum Shanghai upgrade. The total amount withdrawn by the two institutions was a staggering 870688 ETHs, which accounted for a significant portion of the total withdrawal of principal after the upgrade.

Reasons for Withdrawals by Kraken and Coinbase

There could be multiple reasons for the massive withdrawal of principal by Kraken and Coinbase after the Ethereum Shanghai upgrade. One of the primary reasons could be the fear of network instability and security concerns. Many institutional investors are cautious about the risks associated with investing in cryptocurrencies due to their volatile nature.
Another reason could be the uncertainty surrounding the future of Ethereum because of the proposed switch from proof-of-work (PoW) to proof-of-stake (PoS). The switch to PoS could have a massive impact on the network’s performance and has led to a lot of speculation among investors.

Conclusion

The Ethereum Shanghai upgrade has certainly had a significant impact on the cryptocurrency market, particularly on institutions such as Kraken and Coinbase. The massive withdrawal of principal by these institutions suggests that investors are becoming increasingly cautious about the performance and security of cryptocurrencies.
However, it is crucial to note that while the short-term impact of the Ethereum Shanghai upgrade may be negative, the long-term implications are likely to be positive. The upgrade has the potential to improve the network’s functionality, reduce transaction cost, and enhance overall security.

FAQs

1. What is Nansen data?
Nansen is an analytics platform that provides real-time insights into cryptocurrency transactions, network activities, and investors’ behavior.
2. What is proof-of-work (PoW) and proof-of-stake (PoS)?
PoW and PoS are consensus algorithms used in blockchain networks. PoW relies on computational power to validate transactions and create new blocks, while PoS depends on coin ownership.
3. Can the Ethereum Shanghai upgrade lead to a shift in dominance from Bitcoin to Ethereum?
While it is too early to predict the long-term impact of the upgrade, it is essential to note that Ethereum has been gaining momentum in the cryptocurrency market over recent months, and the upgrade could further enhance its position.

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