{"id":553249,"date":"2023-02-17T20:31:02","date_gmt":"2023-02-17T17:31:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/"},"modified":"2023-02-17T20:31:02","modified_gmt":"2023-02-17T17:31:02","slug":"ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/","title":{"rendered":"# Ethereum on-chain data suggests ETH sell pressure could be a non-event after the Shanghai upgrade"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e16c60cd88\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e16c60cd88\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/#%E2%80%9D_Ethereum_on-chain_data_suggests_ETH_sell_pressure_could_be_a_non-event_after_the_Shanghai_upgrade_%E2%80%9C\" >&#8221; Ethereum on-chain data suggests ETH sell pressure could be a non-event after the Shanghai upgrade &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/#A_portion_of_locked_ETH_is_liquid_thanks_to_liquid_staking_derivatives\" >A portion of locked ETH is liquid thanks to liquid staking derivatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/#Very_few_stakers_are_in_profit\" >Very few stakers are in profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\/#Lido_overtakes_solo_stakers\" >Lido overtakes solo stakers<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_on-chain_data_suggests_ETH_sell_pressure_could_be_a_non-event_after_the_Shanghai_upgrade_%E2%80%9C\"><\/span>&#8221; Ethereum on-chain data suggests ETH sell pressure could be a non-event after the Shanghai upgrade &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The upcoming Ethereum\u00a0Shanghai hard fork is slated to occur in March 2023, and the upgrade will cap off the network\u2019s move to proof-of-stake (PoS), which started during the Merge\u00a0on Sept. 15, 2022. Once Shanghai is implemented, previously locked Ether (ETH) will\u00a0gradually become liquid for the first time since December 2020.\u00a0<\/p>\n<p>According to on-chain Etherscan data, over 16.6 million ETH is currently locked in the PoS staking protocol, which was valued at $28 billion on Feb. 16, 2023. Ethereum\u2019s move from proof-of-work (PoW) to PoS has started to achieve the original goal, which was to make Ether\u2019s supply deflationary. In the 154 days since the Merge, over 24,800 ETH has been burned to make the token 0.05% deflationary on a yearly basis. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/e66a2706-8f54-40a7-afbd-37a50ff181c1.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Key Ether stats since the Merge. Source: Ultra sound money<\/em><\/figcaption><\/figure>\n<p>On. Feb. 16, the total Ether supply sits at 120 million, meaning that a little over 10% of the supply will be unlocked, with yield rewards starting with the Shanghai update.<\/p>\n<p>Let\u2019s explore what on-chain metrics can help identify what may h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en during the Shanghai upgrade. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_portion_of_locked_ETH_is_liquid_thanks_to_liquid_staking_derivatives\"><\/span>A portion of locked ETH is liquid thanks to liquid staking derivatives <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In order to benefit from yield rewards before the Shanghai update, investors had to lock their ETH and run a reliable node. The minimum staking requirement of 32 locked ETH is entirely illiquid, meaning traders had limited utility options for these coins. <\/p>\n<p>Liquid staking derivatives (LSD) allow users to benefit from staked Ether while retaining the ability to sell the derivative token received on the secondary market. The LSD protocols took a fee and locked the native Ether, giving users another token that represents a stake in the pool. <\/p>\n<p>Liquid staking derivatives did not gain prominence until Lido and other protocols began to see a rush of cash flow after the Merge. Since Ether staking began, liquid staking has surpassed illiquid staking. As of Feb. 13, 57% of staked Ether is liquid versus 43% illiquid.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/40db3048-1c88-479c-9fd3-a652e4eaebb5.png\"><figcaption style=\"text-align: center;\"><em>Liquid vs. illiquid staking. Source: Binance<\/em><\/figcaption><\/figure>\n<p>Since a majority of the locked Ether is through LSD, investors currently have access to liquidity, which could reduce sell pressure post-Shanghai.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Very_few_stakers_are_in_profit\"><\/span>Very few stakers are in profit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Back in December 2020 when Ether staking opened, the price of Ether ranged from $400 to $700. Conversely, many investors began staking when Ether was near its all-time high of $4,200. According to Binance:<\/p>\n<blockquote><p>\u201cWe note a sizable amount of ETH (around 2M) was staked at prices in the US $400\u2013700 range \u2014 this represents the earliest stakers in Dec 2020 \u2014 a group that is likely illiquid given that liquid staking was far less known at the time.\u201d<\/p><\/blockquote>\n<p>Because of Ether\u2019s 69% correction since hitting an all-time high, many of the investors who staked their Ether are currently at an unrealized loss. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/b564658c-89bd-40f5-8b1e-9d5dfa9a403d.png\"><figcaption style=\"text-align: center;\"><em>Price when staking occurred. Source: Binance<\/em><\/figcaption><\/figure>\n<p>The minority of stakers who are in profit are likely to be strong believers in the Ethereum network since the date for liquidity was still unknown at this time. With a large number of stakers at a loss and those who are profitable likely to be long-term investors, Ether\u2019s price may not see a massive dump when the tokens are able to be unstaked. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lido_overtakes_solo_stakers\"><\/span>Lido overtakes solo stakers <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Jan. 2, 2023, Lido officially overtook MakerDAO as the highest total value locked in decentralized finance. As of Feb. 13, Lido is also the largest staking entity in Ether. With over 5 billion ETH staked in Lido, the protocol represents 29.2% of all entities. Notably, almost 30% of all stakers have the option for current liquidity through Lido.<\/p>\n<p>Solo stakers who run nodes took a risk to run nodes from home or with a small group. Solo stakers likely believe that Ether is a long-term currency since nodes carry cost and risk. Solo stakers currently make up 24.9% of all stakers.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/68c3938a-4a62-4e1a-b1c3-0c51e7bb3631.png\"><figcaption style=\"text-align: center;\"><em>Staked Ether by entity. Source: Binance<\/em><\/figcaption><\/figure>\n<p>With nearly 55% of all staked Ether being held by either solo stakers or Lido, the risk of an Ether price dump may be reduced. <\/p>\n<p>While the on-chain data surrounding the Shanghai fork may be bullish for the Ethereum network, some analysts are still predicting the potential for a sharp downside in Ether\u2019s price. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-on-chain-data-suggests-eth-sell-pressure-could-be-a-non-event-after-the-shanghai-upgrade\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum on-chain data suggests ETH sell pressure could be a non-event after the Shanghai upgrade &#8220; The upcoming Ethereum\u00a0Shanghai hard fork is slated to occur in March 2023, and the upgrade will cap off the network\u2019s move to proof-of-stake (PoS), which started during the Merge\u00a0on Sept. 15, 2022. Once Shanghai is implemented, previously locked&#8230;<\/p>\n","protected":false},"author":1,"featured_media":553250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c9e626d4-6062-477c-8b8e-06dcec9d10ee.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74863,74860,74868,82402,74891,74938,74939,133582,73785,81175],"class_list":["post-553249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-staking","tag-markets","tag-shanghai"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=553249"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553249\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/553250"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=553249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=553249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=553249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}