Key Insights
- Ethereum deposits have surpassed withdrawals, a week after the network’s Shapella hard fork
- 8 million $ETH have been taken out in total, and 575,000 $ETH has also been added so far.
- As of writing, 929,999 ether, or slightly under a million, are waiting to be withdrawn.
- However, several analysts believe that a sharp growth in Ethereum staking is not always a positive thing.
For the first time since the upgrade, Ethereum deposits have surpassed withdrawals, a week after Ethereum’s Shapella hard fork.
Now, 112,568 ether worth $1.94 billion has been added to liquid staking protocols over the last three days, and 929,999 ether worth $1.94 billion is pending withdrawal.
Investors have been closely watching ETH withdrawals since the Shapella upgrade, owing to the speculation about whether there would be a massive selloff after the upgrade.
However, the reverse has been the case as of April 18, 2023. Over the past week, ETH has increased 6.5% in value relative to the US dollar at the time of writing.
ETH Deposits Surpassed Withdrawals
The Nansen Shapella dashboard shows that ETH deposits outpaced withdrawals in the late afternoon of April 17 and have continued to do so ever since. It recorded 154 withdrawals and 7,020 deposits within the last hour.
Depending on the analytics platform being used, the statistics might change a little. For example, according to the latest data from Token Unlocks, 1.08 million ETH have been taken out in total. Also, it states that since the Shapella update one week ago today, 575,000 ETH has been staked.
The number of withdrawals and those waiting to withdraw has increased over the week as well. As of right now, 929,999 ether, or slightly under a million, are waiting to be withdrawn.
A significant portion of these tokens comes from the Kraken staking services, which were shut down earlier this year by US regulatory bodies.
According to this data, this indicates that the overall amount of previously staked ether has only decreased by about 500,000 ETH.
Ethereum Staking Balance to Surge
On April 15, 2023, 8,030,870 $ETH units were locked into liquid staking derivatives platforms, according to liquid staking stats from DefiLlama.com.
According to the most recent ETH exchange rates, the amount has grown to 8,143,438 ether, which is worth $17.10 billion as of right now.
Lido’s liquid staking protocol currently has $12.65 billion in total value locked (TVL), an increase of 1.86% over the last seven days.
With 6,044,058 ETH staked, Lido holds 74.2% of the market share out of the 8.14 million ether staked. Rocket Pool had a growth of 4.37%, while Coinbase’s Wrapped Staked Ether protocol saw a loss of 2.84%. Also, according to seven-day data, the protocol TVL for Frax Ether grew by 13.01%.
According to statistics from Token.Unlocks, the annual percentage rate (APR) for staking ETH is presently 4.87%.
The average Ethereum network transaction charge is 0.0059 ETH, or $12.45 per transfer, according to statistics. The average Ethereum network transaction fee is 0.0025 ETH, or $5.30 per transfer, according to bitinfocharts.com data.
Several industry professionals, however, believe that a sharp growth in Ethereum staking is not always a positive thing.
They say that even with liquid staking incentives, ETH staking may not even approach the high levels of other layer-1 blockchains. This is a result of its many use cases.
Ethereum Price Outlook
Ethereum is more bullish than Bitcoin by several orders of magnitude, according to data from CoinMarketCap.
While Bitcoin has taken a 2.6% hit over the last 7 days, Ethereum still sits at a 6.5% gain.
From a daily perspective, however, Ethereum isn’t so bullish. The cryptocurrency has also taken a massive 5.5% hit and is currently losing its footing around the $2,000 zone.
After breaking through an ascending channel on the cryptocurrency’s daily chart, Ethereum has now reversed and is retesting support around $1,950 as illustrated above.
There is a good chance of a price reversal from this retracement, considering how the RSI is also heading for the neutral zone. The 20-day moving average (red line) around $1,930 can be trusted to hold the price of the cryptocurrency up.
If this support zone breaks, Ethereum might trend further down to its 50-day moving average of around $1,750.
Overall, Ethereum is still bullish.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
