Staked Ethereum surpasses 16M, over 70% stakers at a loss Oluwapelumi Adejumo · 2 hours ago · 2 min read
Staked ETH has risen 18% to over 16 million ETH but over 70% of stakers have made losses, according to Dune analytics.
2 min read
Updated: January 12, 2023 at 2:48 pm
Cover art/illustration via CryptoSlate
The amount of staked Ethereum (ETH) has risen by 18% to over 16 million since the network completed its transition to a proof-of-stake (PoS) network last year, according to CryptoSlate data.
The 16 million staked ETH equates to roughly 13.28% of ETH’s total supply — worth $22.42 billion — 500,213 total validators and 87,121 distinct depositor addresses, according to Dune analytics data.
Lido is the dominant staking platform
Lido is the dominant staking platform, controlling 29.08% of staked Ethereum. Around 4.65 million ETH — worth $6.8 billion — have been staked through it, according to the offical Lido website,
Other top staking platforms — including centralized exchanges (CEXs) like Coinbase, Kraken, and Binance — hold approximately 26.7% of staked Ethereum, according to Dune analytics data.
Cumulatively, the top four ETH staking platforms control 55.78% of staked Ethereum.
72% of staked ETH at a loss
Currently, 71.7% of Ethereum stakers are at a loss in terms of staked ETH holdings leaving only 28.3% currently in profit.
Stakers in profits staked their coins when ETH was trading at roughly $1300, shown in the chart below.
With ETH trading at over 70% below its all-time high (ATH), crypto investors who staked their asset at the ATH have been hit most as the bear market.
Staked ETH has gained attention in light of the upcoming Shanghai update which will allow stakers the ability to withdraw their staked ETH.
Bitcoin, Ethereum Technical Analysis: ETH Nears $1,700, Fed Prepared To Maintain Rate Hikes
Ethereum closed in on the $1,700 level on Wednesday, as markets reacted to comments from U.S. Federal Reserve Chair Jerome Powell. Speaking after Tuesday’s session, Powell hinted that the Fed could continue to hike rates, should the data show the need for action. Bitcoin was also boosted by the news, climbing back into the $23,000 region.
Bitcoin (BTC) moved higher on Wednesday, following comments from Federal Reserve Chair Jerome Powell.
Speaking yesterday, Powell stated, “The reality is we’re going to react to the data. So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more than is priced in.”
BTC/USD rose to an intraday high of $23,367.96 earlier today, less than 24 hours after hitting a low of $22,781.95.
Looking at the chart, the move pushed bitcoin to its strongest point in four days, and came as the 14-day relative strength index (RSI) ran into a ceiling.
The index rose to a ceiling at 65.00, however momentum was not strong enough to break out of this point.
As of writing, the index is tracking at 62.92, with BTC falling from earlier highs, and currently trading at $23,195.36.
Ethereum (ETH) extended recent gains today, with prices breaking out of a key resistance point in the process.
Following a low of $1,628.67 on Tuesday, ETH/USD jumped to a peak of $1,688.53 during the hump-day session.
As a result of today’s gains, the world’s second largest cryptocurrency climbed past a resistance level at $1,675.
Similar to bitcoin, this move pushed ETH to its highest point since Saturday, with the RSI also hitting a four-day peak.
At the time of writing, the index is at a reading of 62.97, which is slightly below a ceiling at 64.00.
ETH bulls will likely attempt to break this resistance in the coming days, which will inevitably mean prices move back above $1,700.
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Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
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Ethereum [ETH]: Rising gas fees affect not just the real world, but Web3 as well
- Rising gas prices could affect Ethereum.
- NFT trades decline, but traders show optimism.
As the Ethereum [ETH] network continues to grow, new data has revealed an alarming trend. Gas fees on the Ethereum network have been steadily increasing since the network’s recent merge. This rise in gas prices might hinder the adoption of Ethereum, as it could make the network inaccessible to users who cannot afford the fees.
Ever since the Ethereum merge, gas prices have been on an uptrend 📈
— hildobby (@hildobby_) February 6, 2023
Read Ethereum’s [ETH] Price Prediction 2023-2024
The growing gas prices have had a direct impact on the number of active addresses on Ethereum. As the cost of transactions increases, fewer users may be willing or able to take part in the network, leading to a decline in active addresses.
The NFT market gets affected
The cost of transactions also varies depending on the type of transaction, with the highest gas prices seen for Ethereum NFT transactions. This has contributed to a decline in interest in Ethereum NFTs, as the cost of creating and trading these digital assets becomes increasingly prohibitive.
Despite the challenges posed by the rising gas prices, there are some signs of optimism on the Ethereum network. One of these is a surge in the velocity of ETH, indicating that the frequency with which ETH is being traded amongst addresses has increased.
At the same time, the MVRV ratio declined, meaning that most Ethereum holders would not make a significant profit if they were to sell their holdings at this time. This reduced the sell pressure on Ethereum and made it less likely that the price will drop in the future.
Traders turn positive
Additionally, traders were becoming increasingly optimistic about Ethereum as long positions on the network increase. According to Coinglass, over 52% of all positions on Ethereum were long positions. This indicated that traders believed that the price of ETH would continue to rise. This growing optimism, coupled with the reduced sell pressure, could contribute to a more stable Ethereum market in the future.
How much are1,10,100 ETH worth today?
Overall, the increasing gas prices on the Ethereum network are a cause for concern for holders.
While these rising costs could potentially limit the network’s adoption, there are also indications of growing optimism and stability in the network. Only time will tell whether these positive developments will outweigh the challenges posed by the rising gas prices.
Interest in digital assets unabated with multiple weeks of consecutive inflows: Report
- Digital asset investment products logged the fourth week of consecutive inflows last week.
- There has been a significant increase in investments in short-bitcoin, indicating that a substantial number of investors remain uncertain about the future trajectory of the market.
Inflows into digital asset investment products totaled $76 million last week, bringing the fourth consecutive week of inflows to $230 million, CoinShares found in a report on 6 February.
Last week’s inflow represented a 35% decline from the $117 million recorded in inflows the previous week.
Coinshares noted that the consistent increase in inflows into digital assets marked a distinct shift in investor sentiment for the start of 2023. It said:
“Digital asset investment products saw inflows totaling US$76m last week, the 4th consecutive week of inflows with year-to-date inflows now at US$230m, highlighting a decisive change in investor sentiment for the beginning of 2023.”
“Put your money where your mouth is,” Bitcoin says
According to Coinshares, investors mostly directed their attention towards Bitcoin [BTC] during the week, with inflows totaling $69 million. This accounted for 90% of the total inflows recorded last week.
Coinshares found that a substantial interest in BTC was predominantly observed in the US, Canada, and Germany, with inflows of $38 million, $25 million, and $24 million, respectively.
While BTC remained the primary focus, inflows into short-Bitcoin reached $8.2 million during the same time frame. Coinshares opined that this meant that the market remained unsure of a continued rally in BTC’s price.
“The rest of the inflows were from short-Bitcoin, which totaled US$8.2m over the same period, highlighting opinion remains divided over the sustainability of this rally.”
Despite being relatively small compared to the long-Bitcoin inflows, the inflows into short-Bitcoin accumulated to $38 million over the past three weeks and comprised 26% of the total assets under management. Nevertheless, the short-Bitcoin trade had yet to be successful year-to-date, with the total short-Bitcoin assets under management declining by 9.2%.
The altcoins did their part
Per Coinshares, Ethereum [ETH] saw only $700,000 of inflows last week, despite the improving clarity around making previously staked ETH coins available with the scheduled Shanghai upgrade.
Other altcoins, such as Solana [SOL], Cardano [ADA], and Polygon [MATIC], also saw minor inflows of $500,000, $600,000, and $300,000, respectively.
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