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Last week, Ethereum's highly anticipated Shapella upgrade was successfully implemented on the mainnet, allowing validators to withdraw their staked Ether after a three-year wait.
However, only 253 validators have registered to completely exit their staked Ether position, according to Glassnode, an analytics company. It is also expected that less than 1% of the staked ETH will be withdrawn.
This low withdrawal rate could be due to several reasons, including the high gas fees required to initiate the withdrawal process, the belief that Ethereum's value will increase in the future, and the opportunity cost of not earning staking rewards. Additionally, some validators may have chosen to remain staked to support the network's security.
In other Ethereum news, an Ethereum researcher has raised concerns that staking Ether could become a privacy issue, as staking discloses a user's IP address information. This could potentially compromise the anonymity of users and their transactions, especially in countries with strict internet regulations.
Meanwhile, a hacker managed to exploit an old Yearn.finance contract, minting 1 quadrillion Yearn Tether (yUSDT) and trading it for other stablecoins worth $11.6 million. This incident highlights the importance of regular security audits and updates in the DeFi ecosystem.
Despite the security risks, the top 100 DeFi tokens had a bullish week, with most trading in the green following Ethereum's successful upgrade. One significant development in DeFi-based financial inclusion was Fonbnk's partnership with Tanda, which provides increased liquidity and earning opportunities for African micro-entrepreneurs.
Looking ahead, Glassnode predicts that during the first week of the Ethereum Shanghai hard fork implementation, only 170,000 Ether out of the 18.1 million ETH staked on the Beacon Chain will be unlocked, comprising 100,000 Ether in staking rewards and 70,000 ETH in staked Ether. This upgrade is expected to improve the network's scalability and reduce transaction fees, but it remains to be seen how it will impact the overall Ethereum ecosystem.