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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.

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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.

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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.

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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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Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

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