Less than 1% of Staked ETH Will Be Sold, Glassnode Reassures
As the highly anticipated Shanghai upgrade approaches, blockchain analytics firm Glassnode predicts that less than 1% of staked ether (ETH) will be sold. Only 253 validators have signed up to leave their staked ETH positions, providing the basis for Glassnode’s prognosis. If this prediction holds, merely 170,000 ETH out of 18.1 million staked on the Beacon Chain would be freed within the first week of the Shanghai hard fork being implemented.
The on-chain intelligence platform anticipates that the total amount will comprise 70,000 ETH worth of staked ether and 100,000 ETH worth of staking incentives, totaling $190 million. Glassnode supports its claim by stating that only 253 depositors are currently waiting to cash out their investments, and several safeguards have been established to prevent a sudden influx of ether supply into the market.
Minimal Impact on Ether Price Action
Glassnode remains confident that the hard fork will not have a “dramatic” impact on ether’s price action, as the 253 exiting account holders own 1,229 validators. An additional 214 slashed validators will be forced out once the Shanghai upgrade is initiated on Ethereum. Furthermore, Glassnode asserts that only 22% of the 253 users who have already cashed out are making a profit.
The average deposit price across all staked ETH is $2,136, a 12.7% decrease from ether’s current price of $1,865, equating to a net unrealized loss of $4.7 billion. Additionally, Ethereum’s fear and greed index indicates a low greed level for the asset.
EIP-4895: A Step Towards a Fully Functioning PoS System
The Ethereum Improvement Proposal (EIP)-4895, which will enable the release of staked ethereum, is undoubtedly the most anticipated of the five EIPs that the Shanghai upgrade will introduce. This is because it will bring Ethereum one step closer to having a fully functioning proof-of-stake (PoS) system.
Ethereum Price Before the Shanghai Upgrade
Despite the upcoming upgrade, Ethereum’s price has been relatively slow to react. The asset’s valuation dropped by over 2.5% within 24 hours as of press time. However, Glassnode’s predictions and the anticipation surrounding the Shanghai upgrade may instill market confidence, potentially leading to more stable or positive price action for Ethereum in the near future.