cryptopotato.com
Ethereum’s Shanghai upgrade seems to be just around the corner. The core change that will be implemented after it’s through will be that ETH stakers will be able to withdraw their cryptocurrency currently locked in the ETH 2.0 smart contract.
At the time of this writing, the Beacon Deposit Contract holds almost 16 million ETH, worth a little over $21 billion at current prices. Naturally, this brings the question if unlocking this amount will cause immense selling pressure.
- One of the worries is that many investors have had their ETH locked in for years and that they are eager to realize the profits they’ve gained from both the price increase and the yield they’ve received.
- However, a closer look at the on-chain numbers crunched by Lookonchian reveals that the average price of accounts that deposited less than 5,000 ETH is actually higher than the current price.
With the coming of Ethereum Shanghai upgrade, some investors worry that opening staking withrdawals will put selling pressure on ETH.
We analyze investors who deposit less than 5000 ETH and the average price they deposit ETH to Beacon Deposit Contract is $2,260.
- Of course, this doesn’t mean that said investors wouldn’t sell their ETH, albeit at a loss, but it probably makes it slightly less likely.
- At the same time, it’s also important to note that it’s unlikely that the withdrawals will be enabled all at once.
- It has previously been mentioned that users will be able to withdraw over time.
- Meanwhile, in our recent podcast, ConsenSys Product Manager Matt Nelson explained at length what the scope of Shanghai could be and how it would be implemented.