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.