Data from CryptoQuant shows that 60% of total staked ethereum (ETH) is running at a loss after the Shanghai upgrade, the first major upgrade to the network’s hard fork since The Merge.
According cryptoquantificationan online blockchain explorer and on-chain data provider, 60% of total staked ethereum (ETH) is currently running at a loss after the Shanghai update.
The data revealed that ETH would continue to experience low selling pressure despite the recent update allowing ethereum investors to withdraw their ETH from the liquidity pools that validate transactions on the network.
This is contrary to the expectation that when liquidity pools are finally opened, investors will withdraw their staked ETH, causing increased selling pressure on the cryptocurrency and a subsequent drop in ETH prices.
(embed)https://www.youtube.com/watch?v=Hshwnb30a8s(/embed)
As previously reported by crypto.news, the Shanghai update increased the supply of circulating ETH via unlocked ETH, prompting increased selling pressure as investors look to cash out after two years of holding funds inaccessible.
CryptoQuant also revealed that 13% of the total ETH supply is staked with the majority belonging to large staking pools. Of the 13% staked, 60% are currently at loss, and major Ethereum validators are also taking losses, so it is not economical to withdraw money.
ConsenSys notifies ETH holders of impending withdrawals of staked ETH
ConsenSys, an Ethereum software company, recently updated ETH holders about staking withdrawals. Through an announcement on Twitter, ConsenSys notified ETH holders that the network would support full and partial withdrawals after the hard fork update.
Ethereum switched from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) validation system on September 6.
Before the update, investors started betting on ETH and have been doing so for the past two years.
Although surrounded by controversy, the update was meant to improve blockchain deliveries for the Ethereum network.
