ETH total stakes are up 18% since the Shapella upgrade. More than 60% of strikers have suffered losses since they staked their ETH.
The highly anticipated Shapella Upgrade, which went live on Ethereum [ETH] mainnet, more than two months ago, started making progress towards its goal of boosting ETH staking.
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According to on-chain analytics company Glassnode, total ETH on the largest proof-of-stake (PoS) network has soared above 26 million at the time of writing. This represented an impressive 18% jump from the day Shapella Upgrade was performed.
Source: Glassnode
New validators come on board
Staking, which was considered a risky proposition due to the ambiguity of the withdrawal, got a boost after the Shapella upgrade allowed users to stake their ETH. This confidence led them to take their ETH again after an initial burst of withdrawals.
At the time of publication, the total amount wagered accounted for nearly 21% of the total circulating supply of ETH.
However, the increase in strikes was not only due to deposits from existing strikers. Additional data revealed that there has been significant growth in the number of new addresses depositing 32 ETH on the Ethereum smart contract. Although the pace has slowed markedly since the initial excitement, it is still higher than the 2022 average numbers.
Source: Glassnode
Strike becomes lucrative
A possible reason behind the persistence of staking could be that several strikers were underwater. According to data retrieved from a Dune dashboard, about 66% of stakers suffered a loss because they locked their ETH to the network.
Most of this strike occurred at the $1,600 and $3,500 price levels, during the peak of the 2021 bull run. However, at the time of publication, the market price of ETH was $1,866.24, according to CoinMarketCap.
Source: Dune
Therefore, it made more sense, especially for experienced stakers, to hunt for yield opportunities when staking and wait for ETH’s next bull run, rather than staking and selling their positions at a loss.
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Exchange supply is shrinking
The strategy was also reflected in the rapidly declining supply of ETH on exchanges. According to the data below, the available-to-trade liquid supply of ETH fell to a seven-year low at the time of writing. This indicated that investors were more interested in HODL and wagering policies, strengthening the narrative of ETH as a long-term investment option.
Source: Glassnode
This post ETH strike reaches new highs as traders expect this outcome
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