The final piece of The Merge, Shanghai allowed the 17M+ ETH (20%+ of supply) locked in staking contracts since 2020 to exit. Despite fears of a selling cliff, actual net withdrawals were modest — most stakers either restaked or kept holding. The upgrade fully normalized staking as a yield source and set the stage for liquid staking protocols (Lido, Rocket Pool) to capture major market share.
protocol·April 12, 2023
Shanghai Upgrade — ETH Staking Withdrawals
Ethereum enables withdrawals of staked ETH. $15B in staked ETH becomes liquid.