Building on the success of Shapella, Ether (ETH) prints 10% in 24 hours and surpasses $2100. Let’s take a look at ETH withdrawals and deposits for staking and the possible impact on the price of the cryptocurrency.
Ether breaks the dominance of Bitcoin (BTC)
Thanks to an (once again) extremely bullish Asian session, Ether (ETH) printed 10% increase over the last 24 hours. As of this writing, ETH price has broken through the $2000 resistance and trades for around 2115 dollars.
Rise in the price of Ether (ETH) over the last 24 hours
According to data from TradingView, Ether’s market share soared to 19.8%. This represents an increase of more than 1.1% over the past 24 hours. Note that since the beginning of 2023, ETH’s capitalization weight has increased by around 7%.
For now, Bitcoin (BTC) still dominates the market by 47%. Although this dominance fell by 1% following the Shapella update, it remains sharply up 13.6% since the start of 2023. Over this same period, the cryptocurrency boss has printed 80% of rise and surpassed the $30,000 mark.
As a reminder, the Shapella update is a major Ethereum update, eagerly awaited by the ecosystem. It follows The Merge, which took place in September 2022 and marked the transition from Proof of Work to Proof of Stake. Successfully operated this Thursday, April 13, Shapella now allows validators to retrieve locked ETH in the blockchain for several months.
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$2.2 billion worth of ETH ready to land
For many observers, the release of around 18 million ETH to the market (or $36 billion) through Shapella risked a sharp drop in the price of Ether. Let’s see together what on-chain data can teach us about this.
According to the TokenUnlocks website, the total amount of Ether confirmed to be withdrawn (that is, whose validator status has changed to 0x01) amounts to more than 2.3 billion dollars. Indeed, 1.1 million ETH are now in the queue to leave the network.
Regarding the validators, around 380,000 have initiated an Ether withdrawal. Only 21,000 requested to withdraw all of their 32 ETH, while 358,000 of them only want to access their staking profits.
Over the next 12 hours, it is estimated that 43,720 ETH can be withdrawn, or $92 million. So that would be $184 million a day. At this rate, it would take nearly 2 weeks to process the entire tail.
👉 In The News – Ethereum: Shapella update is live, over 85,000 ETH withdrawn
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Deposits versus withdrawals, who wins?
If we dwell on the day of April 13, the net staking balance (i.e. the difference between the total amount deposited and withdrawn) was positive by more than 4,000 ETH. In effect, 14,300 ETH have been removed from the network and more than 18,370 new coins have been added to it for staking.
Nevertheless, the net balance of staking since the deployment of the hard fork of Shapella is about -140,000. Ether withdrawals stand at 265,000, while deposits account for less than half at 111,000 ETH.
Note, however, that the majority of ETH awaiting withdrawals are from staking rewards. This means that the vast majority of validators do not wish to close their node and continue to believe in the future of the Ethereum network.
Dashboards for staking Ether on the Ethereum network
At the time of writing these lines, only 15% of Ether in circulation is used for staking, which is much less than the main Proof Of Stake type blockchains. Nonetheless, the Shapella update should motivate users to help secure the network and lock up their ETH.
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