CryptoQuant data shows that 60% of the total staked ethereum (ETH) is running at a loss after the Shanghai upgrade, the network’s first major hard fork upgrade since The Merge.
According to CryptoQuant, an online blockchain explorer and on-chain data provider, 60% of the total staked ethereum (ETH) is currently running at a loss after the Shanghai upgrade.
The data revealed that ETH would continue to experience low selling pressure despite the recent upgrade allowing ethereum investors to withdraw their ETH from liquidity pools that validate transactions on the network.
This is contrary to the expectation that when liquidity pools finally open, investors will withdraw their staked ETH, causing an increase in the selling pressure of the cryptocurrency and a subsequent crash in ETH prices.
As previously reported by crypto.news, the Shanghai upgrade increased the circulating ETH supply through unlocked ETH, causing an increase in selling pressure as investors look to cash out after two years of having inaccessible funds.
CryptoQuant also revealed that 13% of the total ETH supply is staked, and most belong to large staking pools. Out of the 13% staked, 60% is presently running at a loss, and significant Ethereum validators are also bleeding in losses making it uneconomical to cash out.
ConsenSys notifies ETH holders of imminent staked ETH withdrawals
ConsenSys, an Ethereum software company, recently updated ETH holders on stakes withdrawals. Through an announcement on Twitter, ConsenSys notified ETH holders that the network would support full and partial withdrawals after the hard fork upgrade.
Ethereum transitioned from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) validation system on Sept 6.
Before the upgrade, investors started staking ETH and have been doing so for the past two years.
Although surrounded by controversies, the upgrade was meant to enhance blockchain deliveries for the Ethereum network.