On Wednesday, February 1st, 2023, a thread was put out by an anonymous Twitter account Marceauth, stating that 82 percent of staked Ethereum is currently in the red.
82% of staked ETH is underwater (vs. price at time of deposit).
The idea that "everyone is up big and will want to exit and take profit" doesn't match the data. pic.twitter.com/KqBNLRY20Z
— Marceau 🏝️ (@marceaueth) January 31, 2023
In his tweet, Marceauth pointed out that the idea of everybody reaping a massive profit from staked ETH doesn’t match the data as 82% of staked Ethereum is suffering underwater.
Staked ETH has gained attention thanks to the upcoming Shanghai update, which will allow stakers the ability to withdraw their staked ETH. In light of ETH trading at over a whopping 70% loss, way below its all-time high, crypto investors who staked their asset at periods of all-time highs are recorded to have experienced the most casualty in the bear market.
According to data shared from Dune Analytics, a crypto analytics dashboard that tracks all ETH sent to the consensus layer deposit address. Dune Analytics Pictorially demonstrated how some ETH stakers were currently making a profit, while others were at the breakeven threshold. Yet, others were experiencing a loss.
As of the 12th of January, 77.5% stakers were at a loss at press time, while only 22.5% were in profit. According to the chart, the various phases of profit were decided by the price of Ethereum at various stages of entry into different staking pools by stakers.
The January 4 published data further demonstrated an 80% recorded loss on staked ETH, explaining that stakers who happen to be part of the 20% still recording a profit are those that staked ETH at prices lower than the current levels.
Not surprisingly, following the massive losses recorded in staked ETH, the amount of weekly staked ETH has experienced a sharp decline with even fewer ETH being staked since the last quarter of 2022. Over the past couple of weeks, only a total of 25,000 ETH has been staked.
It can be agreed that before conditions of the market worsened, figures of roughly 150,000 ETH were being staked back to back, per week. Yet some users do not agree that the metrics provided by Marceauth are valid, as it doesn’t account for users that bought ETH during the ICO.
With the path and trend ETH seems to be on, if ETH continues into a downward spiral, chances are there might be massive withdrawals from ETH staking contracts when a withdrawal mechanism is implemented later this year.