• Over 70% Ethereum stakers were underwater at press time.
• The Shanghai upgrade would allow for unstaking once deployed.
• There were currently over 15k ETH staked, equaling 13.18% of ETH’s total supply.
Ethereum’s staking feature has prompted a lot of conversations in recent times. People have discussed topics such as dominant staking pools, OFAC-compliant blocks, and the threats that a combination of the two pose to Ethereum and the transactions that use ETH. However, some groups of stakers are more concerned about the amount of profit their investments have generated.
According to data from Dune Analytics, some ETH stakers are currently making a profit, while others are at the breakeven threshold and some are experiencing a loss. The chart showed that 77.5% of stakers were at a loss at press time, while only 22.5% were in profit. This is decided by the price of Ethereum at various stages of entry into different staking pools by stakers.
At the time of writing, there were over 15k ETH staked across the entire network, equaling 13.18% of ETH’s total supply. Many fear that a huge sell-off is going to occur once the Shanghai Upgrade is deployed as it would enable unstaking.
Looking at ETH’s price movement in the daily timeframe chart, it is relatively flat. The price has increased by over 3% in the last 48 hours and is currently at around $1,253. ETH has been making some progress in bouncing back, according to the Relative Strength Index (RSI).
While most of the stakers are currently at a loss, it is important to note that the staking rewards are still higher than other similar protocols. Additionally, the impending Shanghai upgrade would unlock a large amount of ETH, which could result in increased liquidity and an increase in price.
Overall, Ethereum’s staking feature has been a great addition to the blockchain’s ecosystem. It has allowed users to earn passive returns by simply holding ETH and has also helped to secure the network. It will be interesting to see how the market responds to the Shanghai upgrade and the potential increase in liquidity that it brings.