Crypto traders may have to wait weeks to withdraw funds from the Ethereum blockchain following the launch of its long-awaited ‘Shapella’ software upgrade.
As reported by Reuters, Shapella was intended to unlock $30 billion worth of ether (ETH) staked by investors. However, according to data firm Nansen, around $1.4 billion is currently stuck in a withdrawal queue.
Due to “security reasons,” the Ethereum blockchain can currently process around 1,800 validator withdrawals or nearly 58,000 ETH worth of exits per day. This would total around $115 million.
Speaking to Reuters, Nansen analyst Martin Lee said, “In an extreme scenario, if there’s no limits, and a large majority of validators exit, the Ethereum network would be vulnerable to attacks and bad actors.”
According to the website of major exchange Binance, following Shapella, users will be able to get their hands on their staked funds from April 19 but warned that the transactions could take “15 days to several weeks” to process.