In the world of cryptocurrency, the upcoming Shanghai upgrade for Ethereum has been a topic of great interest and concern. One of the key worries has been the potential increase in selling pressure on ETH, which would occur once withdrawals become possible on April 12th. However, recent data suggests that the selling pressure may not be as high as anticipated.
According to reports, the percentage of Ethereum that has been staked has been steadily increasing, and currently stands at over 14% of the total Ethereum supply. This means that a significant amount of ETH has been locked up in staking contracts, and will not be available for trading until after the contracts expire.
More importantly, the current ETH prices have resulted in over half of the staked ETH (9.7 million out of 17.9 million) experiencing a loss, as the current price is lower than the price at which it was staked. This means that the owners of the staked ETH will be less likely to sell their holdings at current prices, as they would be selling at a loss.
Furthermore, the average price at which all ETH has been staked is still higher than the current prices. The largest staking pool, Lido, which holds around 32% of all staked ETH, has an average loss of almost 20%, which is an improvement from the 30% loss a month ago. However, it’s important to note that a significant portion of the deposits made by the Lido pool is currently underwater, which is represented by the purple area below 0 in the graph.
Based on this data, it’s believed that the selling pressure on ETH after the Shanghai upgrade may be lower than expected. The fact that a significant amount of staked ETH is currently at a loss means that the owners are less likely to sell at current prices, as they would be selling at a loss. Additionally, the average staked price is higher than the current prices, which could further discourage selling.
While the situation may change in the future, for now, it appears that the selling pressure on ETH after the Shanghai upgrade may not be as severe as many had feared. This is good news for ETH holders and the broader cryptocurrency community, who have been closely watching the upgrade and its potential impact on the market.
Read more:
- The Shapella Network Set To Upgrade On Ethereum Network At Epoch 194048 On April 12, 2023
- ETH Surpasses $1,900 Mark, Marking Its Highest Record Since August 2022