60% Of Staked ETH Still Underwater Despite Recent Price Increase – Report
Despite Ethereum’s recent price reaching local highs, over 50% of the staked Ethereum is still experiencing losses. Nevertheless, the total amount of staked tokens continue to rise.
@TechCryptoAnlst, a crypto analytical platform, announced the news on Twitter. The platform also posted a chart showing the different price levels of Ethereum and the number of tokens staked.
60% Of Staked Ethereum Recording Losses
According to the chart, 60% of the staked ETH was held at $1,600 or above, whereas the remaining 40%, which Ethereum holders staked at lower prices, is currently profitable. When the Beacon Chain was released in December 2020, Ethereum holders staked over 2 million ETH.
Ethereum was trading at $500 to $700 at that time. Meanwhile, 50% of Ethereum stakers recording losses does not sound bullish.
However, the situation deteriorated further in 2022 when the price of ETH dropped to $1,000. According to reports at the time, over 80% of the ETH that had been staked was in a position where the value was lower than the initial investment.
According to @TechCryptoAnlst’s chart, a significant amount of Ethereum was staked when the token traded at $2,500 to $3,500. However, the ongoing bear market may prolong the time to see those price levels again.
Furthermore, Ultrasound.Money reports that there are 16.7 million ETH staked, equating to roughly $28.2 billion in value at the current ETH price. This represents approximately 13.8% of the total Ethereum supply.
Unfortunately, since the September 15th Merge, the supply of Ethereum has decreased by approximately 29,192 ETH, equivalent to $49.2 million.
Increased Need For Liquid Staking Platforms
By the end of March, the upcoming Shanghai upgrade will have happened and will allow Ethereum stakers to withdraw their staked tokens. As a result, analysts anticipate a significant increase in demand for liquid staking platforms that provide superior yield opportunities compared to direct staking.
Recent data from the on-chain analytics platform, DeFiLlama indicated that liquid staking protocols had received over 7 million ETH in staking. This constitutes roughly 42% of the total staked amount and is worth over $11.8 billion.
Nonetheless, the recent regulatory measures taken by the United States Securities and Exchange Commission (SEC) may compel American citizens to seek crypto staking opportunities overseas.
Over the last 24 hours, the price of Ethereum has not experienced significant fluctuations. By press time, ETH was trading around the $1,600 mark.
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