The value of Ethereum has plummeted with unrealized losses. However, those with the biggest losses are among the biggest betting.
On April 11, on-chain analytics provider Glassnode reported the current state of profits and losses for restricted Ethereum.
It noted that the net unrealized loss on the Ethereum Beacon Chain amounts to $4.7 billion. However, this is down 70% from the peak of $16 billion after the crash of Terra Luna.
This is when Ethereum prices fell to $1,000 in July 2022. It has nearly doubled since then as the asset knocked on the door of $2,000.
Glassnode also reported that “the largest depositors experience the highest degree of financial pain, holding 70% of unrealized losses.”
Dynamics of Ethereum Staking
However, long-term investors won’t be bothered by things like “unrealized losses.” Buying ETH at any price and holding it for more ETH is a good strategy for many if they have no intention of selling or playing the markets.
Glassnode too notice Nature of the Staking Ethereum pool. He noted that they “mainly consist of frequent depositors who have multiple validators.” These were up to 1,000 deposits a day, she added.
“However, major events such as the genesis of the Beacon Chain, the merger, and the upcoming Shanghai upgrade saw an increase in one-time depositors.”
Moreover, he noted that filing activities are currently low “due to regulatory pressure and Shanghai’s upgrade.”
America’s war on cryptocurrency has included a crackdown on staking services. SEC Chairman Gary Gensler has also repeatedly claimed that ETH is a security. In fact, it has not been officially designated as such by the US Congress.
However, the big question among Ethereum traders is: Will there be a major sell-off after this week’s Shapella upgrade?
April 12 marks the day the network undergoes the long-awaited Chabela (Shanghai) hard fork.
As a result, the collected ETH will be available for withdrawals, but it is not so simple. The 18 million ETH stack will not be released all at once to maintain the security and stability of the network.
Auditors and moderators will have to go through a waiting and withdrawal period, which can take months. Therefore, it is unlikely that a significant portion of ETH will be sold to the markets this week.
ETH price is currently trading at an eight-month high of $1,923 after gaining 3.3% on the day.
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