- 60% of staked ETH is currently at a loss, representing 10.3 million ETH.
- Lido holds almost 30% of all staked ETH at an average loss of nearly $1,000.
- Ethereum has added an “account abstraction” feature through a smart contract.
According to a recent analysis, there is reason to believe that Ethereum (ETH) selling pressure will remain low following the Shanghai Fork upgrade. This is based on examining the profit and loss of staked ETH, which revealed two key factors.
First, 60% of staked ETH is currently at a loss, representing a substantial amount of 10.3 million ETH. Second, the largest staking pool, Lido, holds almost 30% of all staked ETH at an average loss of nearly $1,000, with an average loss of 24% across staked ETH.
Approximately 13% of the total supply of ETH has been staked, meaning it can only be withdrawn in March 2023, when the Shanghai Fork upgrade takes place. As a result, concerns have arisen that when staked ETH can be withdrawn, it may flood the market and create significant selling pressure. However, due to the aforementioned factors, there needs to be more indication that this will be the case.
Typically, selling pressure arises when participants have extreme profits, which is not currently valid for staked ETH. Furthermore, the most profitable ETH was staked less than a year ago and has yet to see significant profit-taking events in the past.
It is worth noting that the 7 EMA Exchange Whale Ratio for Bitcoin (BTC) reached its highest level just before the FTX collapse period. While this does not necessarily indicate that selling will occur in the market, it does suggest that selling pressure derived from inflows to exchanges has significantly increased.
In a companion piece, Coindesk disclosed that a smart contract named EntryPoint, implemented using the new ERC-4337 standard, has brought “account abstraction” to the Ethereum network. This will make it less difficult for customers to recover their cryptocurrencies after losing their private keys to their digital wallets.
Read Also :
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
