In April 2023, Ethereum's Shanghai upgrade (also called "Shapella") allowed users to withdraw staked ETH for the first time. Over 18 million ETH—worth around $34 billion—was unlocked, which had been locked up since 2020.

$ETH

What Does This Mean for Altcoins?

1. More Liquidity:

People who had their ETH locked now have access to it. That means more money can flow into altcoins and other projects.

2. Boost to DeFi:

With more ETH available, investors might start using DeFi platforms again—for lending, borrowing, or farming—creating demand for DeFi-related tokens.

3. Confidence in Ethereum:

The smooth upgrade builds trust in Ethereum’s roadmap, pushing more people to look into other Ethereum-based or altcoin projects.

Examples of Who Could Benefit

  • Layer 2 Tokens: Arbitrum and Optimism help Ethereum scale, so they could gain more users.

  • DeFi Tokens: AAVE, Uniswap, Compound may see more activity as users re-enter the DeFi world.

Conclusion:

The Shanghai upgrade didn’t just free up ETH—it may be the spark that reignites the altcoin market. As liquidity returns, expect to see money spread into new opportunities throughout the crypto ecosystem.