WebsCrypto
  • News
  • Prices
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Blockchain
  • DeFi
  • Policy
  • Opinions
  • Guides
  • PR
Facebook Twitter LinkedIn Telegram
WebsCryptoWebsCrypto
ADVERTISE
  • News
  • Prices
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Blockchain
  • DeFi
  • Policy
  • Opinions
  • Guides
  • PR
WebsCrypto
News

Ethereum On-Chain Data Suggests Upcoming Shanghai Upgrade Won’t Cause ETH Selling Pressure

By Simon LawsonFebruary 18, 20232 Mins Read
Ethereum On-Chain Data Suggests Upcoming Shanghai Upgrade Won't Cause ETH Selling Pressure
Share
Facebook Twitter Telegram LinkedIn Reddit Email

As the March 2023 Ethereum Shanghai hard fork looms, traders predict it could lead to a sharp sell-off in ether. However, a recent report from Binance suggests that on-chain data does not support this prediction.

This upgrade will be the final step in the network’s transition from Proof-of-Work to Proof-of-Stake starting with the Merge on September 15, 2022. After the Shanghai upgrade is implemented, previously locked Ether will gradually become liquid for the first time since December 2020. More than 16.6 million ETH is currently locked in the proof-of-stake protocol, worth $28 billion by February 16, 2023.

On-chain Etherscan data shows that the Liquid Staking Derivatives (LSD) protocol charges a fee and locks native ether, allowing users to benefit from staked ether while retaining the ability to sell derivative tokens on secondary markets. As of Feb. 13, 57% of staked Ether was liquid, while 43% was illiquid, with the majority of locked Ether acquired via LSD. That means investors now have access to liquidity, which could ease selling pressure after Shanghai.

While some traders predicted that ethereum prices could drop sharply after Shanghai, the data suggests that the current profitable minority shareholders may be firm believers in the ethereum network, as the date of liquidity at the time was still unknown. With a large number of stakers at a loss and those in profit likely to be long-term investors, Ether’s price may not see a significant drop when tokens are able to unstake.

Related:  Makerdao Addresses $3.1B in USDC Collateral Following Stablecoin Depegging Incident

Lido is now the largest staking entity in Ether, accounting for 29.2% of all entities with more than 5 billion ETH staked. Solo stakers running nodes currently represent 24.9% of all stakers. With nearly 55% of staked Ether held by independent stakers, or Lidos, the risk of an Ether price crash may be reduced.

Ethereum’s transition from proof-of-work to proof-of-stake has begun to achieve its original goals, even with a deflationary supply of ether. Over 24,800 ETH was burned within 154 days of the merger, deflation of the token by 0.05% per year. On February 16th, the total supply of Ether was 120 million, which means that slightly more than 10% of the supply will be unlocked, and the rewards will start with the Shanghai update.

DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
Binance Ethereum Market
Related News

Crackdown on Crypto Crime: UK Sets Out Plans

Aspen Digital Appoints Elliot Andrews as CEO

SBF Pleads Not Guilty to All 13 Counts

Report: Cryptocurrency Donations Will Exceed $10 Billion in Ten Years

India to Collect Over $19.2 Million in Cryptocurrency Taxes in FY 2023

Mike Novogratz: Despite U.S. Regulations, Cryptocurrency Markets Have Been Strong This Year

The Latest
News April 1, 2023
Crackdown on Crypto Crime: UK Sets Out Plans
Business April 1, 2023
Aspen Digital Appoints Elliot Andrews as CEO
News March 31, 2023
SBF Pleads Not Guilty to All 13 Counts
News March 30, 2023
Report: Cryptocurrency Donations Will Exceed $10 Billion in Ten Years
News March 30, 2023
India to Collect Over $19.2 Million in Cryptocurrency Taxes in FY 2023
Block 3000

WebsCrypto contains crypto news about cryptocurrencies, bitcoin, ethereum, altcoins and more.

Facebook Twitter LinkedIn Telegram RSS
Categories
  • News
  • Markets
  • Business
  • Markets
  • Opinions
  • Guides
  • Press Release
  • Sponsored
Tags
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Blockchain
  • DeFi
  • Regulation
  • Policy
About
  • About Us
  • Contact Us
  • Advertise
  • Crypto Prices
  • Privacy Policy
  • Terms of Service
© 2023 WebsCrypto.

Type above and press Enter to search. Press Esc to cancel.