The long-awaited Shanghai/Capella (Shapella) upgrade went live on April 12, 2025 — marking a pivotal moment in Ethereum’s evolution. For the first time since staking began in December 2020, validators can finally withdraw their staked ETH. While this feature has been anticipated for years, the process isn't instantaneous and varies depending on validator status, withdrawal type, and platform policies.
This guide breaks down everything you need to know about ETH withdrawals, the Shapella upgrade, staking rewards, and what it all means for the future of Ethereum and the broader crypto market.
What Was the Shapella Upgrade?
At 22:00 UTC on April 12, 2025, Ethereum executed two coordinated upgrades:
- Shanghai: A hard fork on the execution layer enabling ETH withdrawals from the Beacon Chain to user wallets.
- Capella: An update to the consensus layer that finalized withdrawal functionality for stakers.
Together, they’re known as “Shapella” — a portmanteau of Shanghai and Capella. The most significant outcome? Stakers can now access their principal and accumulated rewards.
Ethereum Staking and the Beacon Chain: The Road to Proof-of-Stake
On December 1, 2020, Ethereum launched the Beacon Chain, initiating its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This marked the beginning of Ethereum 2.0.
Understanding the Beacon Chain
The Beacon Chain serves as Ethereum’s consensus engine. It manages validator registration, orchestrates block proposals, and ensures network security by randomly assigning validators to committees of 128 members per epoch.
Each slot (12 seconds) features a designated block proposer and voting validators. Their collective attestations confirm transactions across the network.
For over 18 months, the Beacon Chain operated parallel to the mainnet. But on September 15, 2022, The Merge occurred — integrating the Beacon Chain with Ethereum’s execution layer. From that point forward, Ethereum became a fully PoS blockchain, slashing energy consumption by 99.95%.
Why Staking Locked ETH Until Now
To become a validator, users must stake 32 ETH — a substantial financial and technical commitment. Once staked, those funds were effectively frozen with no way to exit — a major barrier for many potential participants.
Many early stakers deposited ETH when prices were high (up to $4,000+), only to watch values drop below $1,000 in 2023. According to Dune Analytics, 65% of stakes were underwater by early 2025. The inability to exit added psychological and financial pressure.
Now, with withdrawals enabled, stakers have regained control — restoring flexibility and trust in the ecosystem.
Alternatives to Solo Staking
Not everyone can afford or manage a full validator node. Fortunately, several alternatives exist:
Staking-as-a-Service (SaaS)
Platforms like Allnodes and Kiln offer managed staking services. Users provide the 32 ETH and signing keys; providers handle infrastructure. Ideal for investors seeking passive income without technical overhead.
Staking Pools
Users pool resources to meet the 32 ETH threshold. Even small deposits (as low as 0.01 ETH) are accepted. Once a node is funded, rewards are shared among participants — typically with a 10% service fee.
Liquid Staking
Liquid staking protocols like Lido Finance and Coinbase issue tokenized representations of staked ETH — such as stETH or cbETH. These tokens:
- Represent your staked balance + rewards
- Are tradable and usable in DeFi (e.g., as collateral on Aave or liquidity on Curve)
- Can be redeemed for ETH post-Shanghai
This innovation dramatically improves capital efficiency — combining yield generation with liquidity.
👉 Learn how liquid staking is unlocking new DeFi opportunities across blockchains.
Ethereum Staking in Numbers (As of April 2025)
- Total staked ETH: ~18.5 million (15% of circulating supply)
- Active validators: Over 579,000
Top staking providers:
- Lido Finance: 31%
- Coinbase: Significant share via cbETH
- Binance & Kraken: Major centralized players
Liquid staking accounts for 33% of all staked ETH, while centralized exchanges control another 27%. Traditional staking pools make up 15.5%.
This concentration raises decentralization concerns — but also highlights user demand for accessible staking solutions.
How ETH Staking Rewards Work
Ethereum’s reward system is more complex than simple block rewards. Returns depend on multiple variables.
Base Reward Formula
The base reward per validator is calculated using:
base_reward = effective_balance × 16 / √(total_active_stake)
Key implications:
- Larger stakes yield higher returns
- As total staked ETH increases, individual rewards decrease
With ~18 million ETH staked, a typical validator earns about 0.0000302 ETH per epoch under optimal conditions.
Optimal vs. Actual Rewards
Block proposers earn extra for including attestations (1/8 of base reward per vote). Voting validators receive up to 7/8 of the base reward.
Penalties apply for missed votes or downtime. Misbehavior (e.g., double-signing) leads to slashing, where part or all of a stake is forfeited.
Current APR: ~4.7%
When staking launched in 2020, APR peaked at 20%. Today, it averages 4.7%, depending on protocol and participation rate.
While modest compared to high-risk DeFi farms, staking offers reliable, low-volatility yield — especially when combined with liquid staking derivatives used across DeFi.
Shanghai Upgrade: Enabling Withdrawals
Key Features of Shanghai & Capella
- EIP-4895: Introduced beacon chain withdrawals to EVM
- PUSH0 opcode: Optimizes smart contract execution
- SELFDESTRUCT deprecation: Enhances security and reduces gas inefficiencies
- Reduced gas fees for certain operations
Capella complements Shanghai by finalizing withdrawal logic on the consensus side.
Types of ETH Withdrawals
Full Withdrawals
Validators can exit the network and withdraw their entire stake (32 ETH + rewards). However:
- Exit queue limits apply (~exit rate depends on active validator count)
- Processing takes ~2 weeks under current congestion
- Must manually deactivate the validator
- Cannot rejoin immediately — must go through activation queue again
As of April 17, over 26,400 validators were queued for full exit — indicating strong but manageable demand.
Partial & Reward Withdrawals
Validators can withdraw excess balance above 32 ETH while remaining active. These include:
- Reward-only withdrawals: Most common; processes accumulated yield
- Partial principal withdrawals: Only allowed above 32 ETH threshold
No gas fees are charged — withdrawals are treated as balance increases rather than transactions.
Currently, around $80 million worth of ETH is withdrawn daily — mostly rewards. Principal withdrawals remain minimal.
When Can You Unstake via Major Platforms?
| Platform | Withdrawal Status | Notes |
|---|---|---|
| Coinbase | Enabled April 13 | Fast initiation but subject to network delays |
| Binance | Enabled April 19 | Gradual rollout expected |
| Lido Finance | Expected mid-May | Awaiting code audits; may use NFT-based withdrawal receipts |
Lido plans faster processing via a buffer mechanism — though current exit queues limit speed regardless.
Market Impact Post-Shanghai
Contrary to fears of a price crash, ETH rose to $2,100 shortly after the upgrade — its highest level since May 2022.
Key observations:
- Net outflow reached 81k ETH/day at peak
- Kraken led withdrawals (46.1%) after exiting staking business
- Binance and Coinbase followed closely
- Lido processed 63% of initial withdrawals
Despite large outflows, price resilience suggests market absorption and continued confidence.
FAQs: Your Top Questions Answered
Q: Can I withdraw any amount of staked ETH?
A: No. You can only fully withdraw all 32 ETH + rewards or partially withdraw amounts above 32 ETH. Custom withdrawals aren't supported.
Q: How long do withdrawals take?
A: Reward withdrawals take 4–5 days; full exits may take up to 2 weeks, depending on queue length.
Q: Do I pay gas fees to withdraw?
A: No. Withdrawals are balance updates, not transactions — so no gas is required.
Q: Can I stake again after withdrawing?
A: Yes, but you must re-enter the activation queue — similar to becoming a validator for the first time.
Q: Is liquid staking still valuable after withdrawals?
A: Absolutely. You now get both yield and liquidity — making LSDs like stETH even more attractive in DeFi strategies.
Q: Will ETH price drop due to mass unstaking?
A: Unlikely in the short term. Withdrawals are gradual, spread over months. New inflows from increased staking accessibility may offset sell pressure.
What’s Next for Ethereum?
The Shapella upgrade didn’t just unlock funds — it completed Ethereum’s vision of a flexible, secure, and sustainable PoS network.
Looking ahead:
- More users may enter staking via liquid protocols
- DeFi integration of LSDs will deepen
- Network decentralization remains a focus
- Future upgrades (e.g., Verge, Purge) aim to scale and simplify
👉 Stay ahead of blockchain trends and explore next-gen crypto platforms today.
Final Thoughts
The Shanghai/Capella upgrade marks a maturity milestone for Ethereum. With full withdrawal capabilities now live, stakers have unprecedented flexibility. While full exits take time and rewards have moderated, the combination of yield, liquidity, and DeFi utility makes ETH staking more compelling than ever.
As the ecosystem evolves, one thing is clear: Ethereum’s transition isn’t just technical — it’s transforming how value is secured, deployed, and returned in decentralized finance.
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