Withdrawals Post-Shapella Could Take Weeks On Binance
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One of the most anticipated crypto events for 2023 is Ethereum's Shapella upgrade, which now enables ETH validators to withdraw their locked funds. However, due to the processing limitations of the Ethereum network, Binance stated that it needed to set a daily redemption limit for each user.
On Binance, ETH withdrawals may take up to 15 days
Binance, the world's largest cryptocurrency exchange by trading volume, has declared on its website that users will be able to reclaim locked ETH funds. The company also revealed that redemption requests could take anywhere from 15 days to several weeks to complete.
The amount of time it takes to complete an ETH unstaking request is determined by the total number of staking participants and ETH withdrawal requests from the Ethereum network. The processing limits of the Ethereum blockchain played a big role in his ETH redemption structure and timeframe on Binance.
Furthermore, Binance clarified that BETH (Binance’s tokenized version of staked ETH) tokens locked in pending withdrawal requests would not accrue any ETH 2.0 staking rewards. And users cannot cancel their withdrawal requests once submitted.
A 10.2% rise in ETH since Shapella
The long-awaited Shapella upgrade launched on Ethereum mainnet. A hard fork consists of modifying the execution (Shanghai) and consensus (Capella) layers of the network. Most importantly, ETH validators can now withdraw their staked funds from the network. There were concerns that the new ability for validators to liquidate staked ETH would cause the value of Ethereum to plummet. However, contrary to popular perception, CryptoQuant predicted a minimal bearish pull post-upgrade.