On Wednesday (March 15), Coinbase explained what its users need to know about Ethereum’s upcoming Shapella Upgrade, which allows for withdrawals of staked Ether ($ETH) and is expected to be deployed to the Ethereum mainnet around mid-April. 

There have been concerns that the ability to withdraw funds could lead to an oversupply of $ETH on the market, especially since there’s approximately $29 billion worth of $ETH staked on the Ethereum network. However, according to a recent CoinDesk report, the crypto analysts said that the volume of $ETH outflows would not be as much as many people expect, and investors should not worry about it.

According to Coinbase’s tweetstorm about the Shapella Upgrade (which includes Shanghai and Capella), users can continue staking their $ETH and earning up to 6.0% APY without any action required, as assets will remain safe during the upgrade. About 24 hours after the upgrade is completed, Coinbase will start taking unstaking requests. All requests are processed on-chain, and Coinbase will pass the unstaked funds and staking rewards to users once the Ethereum protocol releases them.