Ethereum Developers to Launch New Testnet “Zhejiang”

Ethereum staking testnet Zhejiang launches today. Users will be offered a first preview of what the withdrawal process and functionality will look like after the Shanghai upgrade.

The testnet will not offer users the ability to immediately try any of the withdrawal features, which will be implemented in the Shanghai and Capella testnet updates six days later.

Users will be able to try depositing money with validators and get an idea of how the UI will behave. Users will be able to try out various withdrawal and deposit features six days after testnet launch. Ethereum Developer Barnabas Busa said that the ETH developer operations team that set up the testnet will make adjustments as needed to improve the overall experience.

The Shanghai hard fork is a highly anticipated event for Ethereum, as it is the first post-Merge upgrade that will allow ETH holders to withdraw their balance. Selini Capital CIO Jordi Alexander said on Twitter that the latest event was watched closely by ETH traders as Ethereum staking could see a huge spike after the Shanghai upgrade:

“Ethereum staking transactions will explode after the Shanghai update allows withdrawals, especially after Metamask has made these transactions extremely easy. However, liquid staking tokens have been overvalued by this expectation, revenue will not change much as reward returns will decrease as the percentage of staking increases.”