Less than 1% of staked ETH will be sold, Glassnode reassures
Glassnode predicts less than 1% of the staked ETH will be sold amid the upcoming Shanghai upgrade.
The analytic’s company assumption is that just 253 validators had signed up to leave their staked ether (ETH) position, hence supporting their prognosis.
Only 170,000 ether out of 18.1 million ether staked on the Beacon Chain would be freed within the first week of the Shanghai hard fork being implemented if the prediction were to sit well.
The on-chain intelligence platform anticipated that the whole amount would consist of 70,000 ETH worth of staked ether and 100,000 ETH worth of staking incentives, equaling $190 million.
Glassnode provided evidence supporting its claim by stating that just 253 depositors are now awaiting the opportunity to cash out their investment and that several safeguards have been put into place to avoid a sudden influx of ether supply into the market.
Glassnode is confident that the hard fork will not have a “dramatic” impact on the price action of ether because the 253 exiting account holders own 1,229 validators. Another 214 slashed validators will be pressured out as soon as Shanghai is initiated on Ethereum.
Despite this, Glassnode is confident that the hard fork will not impact ether’s price action because, as they further assert, just 22% of the 253 users who have already cashed out are making a profit.
According to Glassnode, the average deposit price across all staked ETH is $2,136. This is a decrease of 12.7% from ether’s current price of $1,865, equivalent to a net unrealized loss of $4.7 billion.
Additionally, the greed index on ethereum, according to data presented by the asset’s fear and greed index.
The ethereum Improvement Proposal-4895 will make it possible to release any ethereum that has been staked.
It is, without a doubt, the most anticipated of the five EIPs that Shanghai will trigger. This is because it will bring ethereum one step closer to having a fully functioning proof-of-stake system.
Ethereum price before the Shanghai upgrade
Ethereum is relatively slow as the asset recorded decreased price valuation despite the new upgrade’s day finally arriving. The asset had lost over 2.5% in valuation within 24 hours as of press time.