Ethereum’s Shanghai upgrade appears to be just around the corner. The core change that will be implemented upon completion is that ETH stakers will be able to withdraw their cryptocurrency currently locked in the ETH 2.0 smart contract.
At the time of writing, the Beacon Deposit Contract holds nearly 16 million ETH, which is worth just over $21 billion at current prices. Of course, this raises the question of whether the free spins of this sum will trigger an immense selling pressure.
- One of the concerns is that many investors have locked in their ETH for years and are keen to realize the profits they have made from both the price surge and the yield received.
- However, a closer look at the on-chain numbers crunched by Lookonchian disclosed that the average price of accounts that deposited less than 5,000 ETH is actually higher than the current price.
With the upcoming Ethereum Shanghai upgrade, some investors fear that the opening of staking withdrawals 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, that doesn’t mean said investors wouldn’t sell their ETH, albeit at a loss, but it probably makes it a little less likely.
- At the same time, it is also important to note that the withdrawals are unlikely to be activated all at once.
- It has already been mentioned that users can opt out over time.
- Meanwhile, in our recent podcast, ConsenSys Product Manager Matt Nelson explained in detail what the scope of Shanghai might be and how it would be implemented.
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