Coinbase anticipates a surge in requests to unstake ETH with the Shanghai upgrade.
Coinbase has disclosed that the amount of time it takes to process an unstaking request can range anywhere from weeks to months since they do not manage the ETH unstaking procedure.
Great news for Ethereum (ETH) stakers! Those who have had their tokens locked up during the Ethereum Merge event may soon be able to unstake their holdings. The Merge event, which is expected to take place in the coming days, will upgrade the entire Ethereum network and aims to bring significant improvements to the protocol.
The cryptocurrency exchange Coinbase has warned customers that unstaking requests may take as long as several weeks or months to process. This news comes in the wake of the upcoming Ethereum network update, which will enable staking withdrawal requests next month. Coinbase anticipates a surge in these requests and has urged customers to plan accordingly. Coinbase noted that the protocol “can take weeks to months to process.” With the update quickly approaching, customers are advised to keep a close eye on their staking requests.
In September 2022, Ethereum took a monumental step in its evolution by transitioning its network from proof-of-work (PoW) to proof-of-stake (PoS). This was a groundbreaking move for the blockchain industry as it allowed users to stake their holdings in the form of ETH. Although the transition was successful, stakers were unable to withdraw their holdings due to a temporary situation created by the merger. To fill this gap, staking providers like Coinbase have enabled their users to stake ETH on their platform. However, they are still unable to withdraw their holdings until the situation is resolved.
Ethereum is set to roll out its Shapella upgrade by mid-April, which will bring great news to ETH holders. The upgrade will give users the ability to "unstake" their ETH and stake more ETH without being subject to an indefinite lockup period. This upgrade is expected to bring more convenience and flexibility to users, allowing them to get more value out of their investments. Ethereum users are eagerly anticipating the arrival of this upgrade, as it is sure to make their staking experience more enjoyable.
7/ We anticipate that demand for unstaking will be high soon after the upgrade and it may take the protocol weeks to months process unstaking requests.— Coinbase (@coinbase) March 15, 2023
Coinbase users have something to look forward to: the ability to make unstaking requests from their accounts. This upgrade, however, comes with a bit of a wait. After submitting a request, customers should expect to wait up to 24 hours before their accounts become available. Coinbase is encouraging all users to plan accordingly, as the wait time could be considerable even after the request has been made.
Coinbase customers hoping to unstake their funds may have to be patient, as the company has warned that it does not have control over the timeline of the process. In an effort to provide some guidance, Coinbase has provided an estimate based on the typical time it takes for the Ethereum network to process transactions. However, the company is cautioning customers to be prepared to wait as the timeline may be longer.
In order to make up for the trouble caused by staking ETH on the Coinbase platform, the company has come up with a new solution to help its users. The solution, called "cbETH", is a liquid staking option that allows stakers to trade ETH while it is still being held in staking. Coinbase promises that users will be able to redeem their ETH at a future date. This new option gives Coinbase users another way to make the most of their ETH.