Ethereum’s Shanghai Upgrade: Lido Protocol Extracts a Dominant Share of 112,000 ETHs Worth $218 Million

On April 13th, according to the Etherscan page information, after the upgrade of Ethereum Shanghai, 112000 ETHs have been unlocked and extracted, with a value of approximately $218 million. Among them, the Lido protocol extracted a total of 63600 ETHs, accounting for 57.2%.

Data: After upgrading to Ethereum Shanghai, over 110000 ETHs have been unlocked and extracted

Ethereum’s Shanghai upgrade on April 13th, 2021, unlocked and extracted a whopping 112,000 ETHs, valued at approximately $218 million, according to Etherscan page information. What’s most interesting is the fact that the Lido protocol extracted the lion’s share, totaling 63,600 ETHs or 57.2%, leaving the rest to other protocols.
In this article, we will examine the details of Ethereum’s Shanghai upgrade and the Lido protocol’s impressive share of the extracted ETHs worth millions of dollars.

Introduction to Ethereum’s Shanghai Upgrade

Ethereum’s Shanghai upgrade is the latest upgrade to Ethereum’s system, which is designed to speed up transactions, lower the cost of transactions, and improve the overall performance of the network. The Shanghai upgrade was a significant milestone for the blockchain network, as it marked the start of Ethereum’s transition to the Proof of Stake (PoS) consensus algorithm, Eth2.0.

The Extraction of 112,000 ETHs Worth $218 Million

Following the upgrade, 112,000 ETHs, worth around $218 million, were unlocked and extracted from the Ethereum network, with the Lido protocol extracting 63,600 ETHs, constituting 57.2% of the total amount of Ethereum extracted. On the other hand, the remaining ETHs, worth around $93.4 million, were extracted through different protocols.

Lido Protocol: Extracting the Dominant Share of 112,000 ETHs

The Lido protocol is a decentralized finance (DeFi) platform built on the Ethereum network, designed to make staked Ethereum coins more liquid, allowing users to stake their assets to earn rewards while also having the freedom to withdraw their funds at any time. The Lido protocol uses a PoS consensus algorithm, Eth2.0, which is considered an improvement on the previous proof of work (PoW) algorithm.
At the time of Ethereum’s Shanghai upgrade, the Lido protocol’s platform had approximately 322,933 ETHs staked, and the protocol’s extraction of 63,600 ETHs, accounting for 57.2% of the total extracted, demonstrates the immense success and popularity of the protocol.

Why Did Lido Protocol Extract So Much of the ETHs?

One possible reason why Lido extracted such a significant share of the ETHs could be attributed to its security and efficiency. In comparison to other protocols, Lido has established itself as a highly secure and efficient protocol. Additionally, the DeFi platform’s favorable rewards system incentivizes users to stake their Ethereum assets, which ultimately leads to an increase in Lido’s share of the total extracted ETHs.

The Future of Ethereum’s Network

The future of Ethereum looks bright, considering the network’s transition towards Eth2.0, which is designed to solve scalability and transaction speed issues. The successful upgrade is evidence of Ethereum’s capability to adapt and innovate, solidifying its place as one of the most influential blockchain networks globally.

Conclusion

In conclusion, the Shanghai upgrade to Ethereum network was significant, unlocking and extracting 112,000 ETHs worth around $218 million. The Lido protocol extracted the lion’s share, accounting for 57.2% of the total extracted amount. The reason behind Lido’s success is likely due to its high levels of security and efficiency, as well as its incentivized rewards system for stakers. Ethereum’s transition towards Eth2.0 marks a pivotal moment for the network, signaling its capability to adapt and innovate, cementing its position as a leader in the world of blockchain.

FAQs

1. What is the Lido Protocol?
The Lido protocol is a decentralized finance (DeFi) platform built on the Ethereum network, designed to make staked Ethereum coins more liquid, allowing users to stake their assets to earn rewards while also having the flexibility to withdraw their funds at any time.
2. What is the significance of Ethereum’s Shanghai upgrade?
Ethereum’s Shanghai upgrade is significant because it marks the start of Ethereum’s transition towards Eth2.0, a new and improved consensus algorithm designed to solve scalability and transaction speed issues.
3. Why did the Lido protocol extract such a significant share of the ETHs?
Lido extracted a considerable proportion of the ETHs due to its high levels of security and efficiency, as well as its incentivized rewards system for stakers.