Analysis by Binance Research shows that detection It turns out that over the past three years, the minority of ETH holders who staked ETH onto the Ethereum Beacon Chain are profitable, while others are losing money.
Source: Binance Research
Ethereum staking involves users locking up their ETH tokens to validate transactions in exchange for rewards paid in ether. Therefore, staking is called passive investment – putting coins in self-storage or exchange wallets. Currently, the annual staking yield on the chain is about 4%.
According to Binance Research, since Beacon Chain launched in December 2020, more than 16.5 million ETH (worth $27.7 billion) has been staked, with 31% or 5.15 million ETH in profit, and the remaining 11.385 billion ETH in staking. state of loss.
The loss here means that the current market rate of ETH is lower than when they were locked in the Beacon Chain.
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The analysis comes as the market tries to gauge potential selling pressure following the Ethereum Shanghai upgrade, which is scheduled for mid-March. This highly anticipated upgrade will open up pledged ETH withdrawals.
According to Binance Research, losers have little incentive to liquidate their holdings after Shanghai’s successful upgrade. At the same time, those who are profitable may continue to hold.
“We noticed that a significant amount of ETH (approximately 2 million) has been staked at prices ranging from $400 to $700 – representing early stakes in December 2020. While this is a significant amount of ETH staked and currently Profitable, but arguably these are the staunchest believers in Ethereum because they were the earliest stakeholders in the market.”
Note that all ETH staked on the day of the upgrade cannot be withdrawn. Additionally, only 43,200 ETH can be unstaked per day. However, according to Saxo Bank, the total staking rewards earned are approximately 1 million ETH, which can be withdrawn immediately.
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According to CoinDesk