{"id":15302,"date":"2023-01-04T14:52:40","date_gmt":"2023-01-04T18:52:40","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=15302"},"modified":"2023-01-04T14:52:40","modified_gmt":"2023-01-04T18:52:40","slug":"ethereum-stakers-in-massive-loss-as-80-of-staked-eth-is-in-the-red","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/01\/04\/ethereum-stakers-in-massive-loss-as-80-of-staked-eth-is-in-the-red\/","title":{"rendered":"Ethereum Stakers In Massive Loss As 80% of Staked ETH Is In The Red"},"content":{"rendered":"

The bear market has resulted in multiple losses for individuals and even large entities, and according to recent data<\/a> shared by crypto analytics site, Dune analytics, the majority of all ETH stakers are in the loss while fewer stakers remain in the money.<\/p>\n

The reason behind the result of more losses than profit is due to the market conditions starting in 2021 after the Ethereum<\/a> Beacon chain was launched, to the present. ETH had reached a new all-time high (ATH) but has also fallen by more than 50% from the ATH.<\/p>\n

Weekly Staked ETH Fall To Lowest Levels as Only 20% Of ETH Staked Is In Money<\/h2>\n

The January 4 published data further showed that 80% of ETH staked are currently recording losses. The stakers who happen to be part of the 20% still in money are those that staked ETH<\/a> at prices lower than the current levels.\u00a0<\/p>\n

Per the data, a significant chunk of staked ETH was staked when ETH was still in the $600 price range \u2014 this dates back to December 2020 when the Beacon Chain was launched. Though ETH has since increased to a point where it\u2019s now 50% higher than the 2020 price level, 80% of the currently staked ETH was staked at prices equal to or above $1,200.<\/p>\n

Following the massive losses recorded in staked ETH<\/a>, the amount of weekly staked ETH has seen a sharp decline with fewer ETH staked since the last quarter of 2022. Over the past week, only a total of 25,000 ETH has been staked.\u00a0<\/p>\n

Prior to the extreme market conditions, figures of roughly 150,000 ETH were being staked per week. Should ETH continue into a downward movement, chances are there could be massive withdrawals from ETH staking contracts when a withdrawal mechanism is implemented later this year.\u00a0<\/p>\n

Considering The Long Term Perspective\u00a0<\/h2>\n

Another narrative worth considering is the long-term perspective. Given the fact that most stakers already had an initial idea of keeping their ETH for the long term, they might as well turn a blind eye to the current price levels of Ethereum<\/a>.\u00a0<\/p>\n

Besides, staking ETH directly or through an exchange would usually involve a committed two-year lockup period. For context, 15.9 million ETH is currently staked, representing 13.2% of the entire supply, according to Dune data reports.\u00a0<\/p>\n

However, even with the dip that seems to be never-ending, there are still hopes for Ethereum and even other altcoins<\/a>. As of the time of writing, ETH is up by over 3% in the last 24 hours with a trading volume of $5.2 billion over the same time period.<\/p>\n

Furthermore, a reversal is expected to happen, given the sharp upwards movements in what seems to be a false move.<\/p>\n

Featured image from istock, Dune analytics and TradingView<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The bear market has resulted in multiple losses for individuals and even large entities, and according to recent data<\/a> shared by crypto analytics site, Dune analytics, the majority of all ETH stakers are in the loss while fewer stakers remain in the money.<\/p>\n

The reason behind the result of more losses than profit is due to the market conditions starting in 2021 after the Ethereum<\/a> Beacon chain was launched, to the present. ETH had reached a new all-time high (ATH) but has also fallen by more than 50% from the ATH.<\/p>\n

Weekly Staked ETH Fall To Lowest Levels as Only 20% Of ETH Staked Is In Money<\/h2>\n

The January 4 published data further showed that 80% of ETH staked are currently recording losses. The stakers who happen to be part of the 20% still in money are those that staked ETH<\/a> at prices lower than the current levels.\u00a0<\/p>\n

Per the data, a significant chunk of staked ETH was staked when ETH was still in the $600 price range \u2014 this dates back to December 2020 when the Beacon Chain was launched. Though ETH has since increased to a point where it\u2019s now 50% higher than the 2020 price level, 80% of the currently staked ETH was staked at prices equal to or above $1,200.<\/p>\n

Following the massive losses recorded in staked ETH<\/a>, the amount of weekly staked ETH has seen a sharp decline with fewer ETH staked since the last quarter of 2022. Over the past week, only a total of 25,000 ETH has been staked.\u00a0<\/p>\n

Prior to the extreme market conditions, figures of roughly 150,000 ETH were being staked per week. Should ETH continue into a downward movement, chances are there could be massive withdrawals from ETH staking contracts when a withdrawal mechanism is implemented later this year.\u00a0<\/p>\n

Considering The Long Term Perspective\u00a0<\/h2>\n

Another narrative worth considering is the long-term perspective. Given the fact that most stakers already had an initial idea of keeping their ETH for the long term, they might as well turn a blind eye to the current price levels of Ethereum<\/a>.\u00a0<\/p>\n

Besides, staking ETH directly or through an exchange would usually involve a committed two-year lockup period. For context, 15.9 million ETH is currently staked, representing 13.2% of the entire supply, according to Dune data reports.\u00a0<\/p>\n

However, even with the dip that seems to be never-ending, there are still hopes for Ethereum and even other altcoins<\/a>. As of the time of writing, ETH is up by over 3% in the last 24 hours with a trading volume of $5.2 billion over the same time period.<\/p>\n

Furthermore, a reversal is expected to happen, given the sharp upwards movements in what seems to be a false move.<\/p>\n

Featured image from istock, Dune analytics and TradingView<\/p>\n

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