After the long-awaited Shapella upgrade, cryptocurrency traders would have to wait several weeks to withdraw money from the Ethereum network.
According to Reuters, Shapella was designed to release investor-staked ether (ETH) valued at $30 billion. However, $1.4 billion is currently piled up in a withdrawal queue, claims data firm Nansen.
The Ethereum blockchain can presently handle roughly 1,800 validator withdrawals, or approximately 58,000 ETH worth of exits each day, due to “security reasons.” This would cost about $115 million in total.
In an extreme situation, if there are no limits and a significant portion of validators leave, the Ethereum network would be open to attacks and hackers, according to Nansen analyst Martin Lee.
Following Shapella, users will be able to withdraw their staked funds starting on April 19, according to the website of major exchange Binance. However, the website warned that the transactions could take “15 days to several weeks” to be processed.