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In the lead up to last month’s Shepela upgrade, many crypto pundits speculated that activating Ether withdrawals could push the price of the underlying asset down.
But the latest data suggests that selling pressure on ETH following the withdrawal has been “somewhat non-eventful.” This is supported by the fact that the amount deposited roughly matches the amount of ETH in circulation.
State of Ethereum: Post Shepela
The Shepela implementation was significant because it enabled the withdrawal of staked ETH from the Beacon chain for the first time. However, the event ignited concerns about volatile ETH entering circulation, potentially perpetuating the selling pressure. The bullish view, on the other hand, argued that the risk of being unable to withdraw was overstated, resulting in more accumulation.
according to nansen reports Who analyzed the condition of Ethereum post-Shapela, observed that the elimination of volatility risks has so far offset the selling pressure from withdrawals. On top of this, a significant portion of the ETH mined is not intended for sale.
The report states that the upgrade has had zero impact on ETH staking.
“Today there are 19.3 million ETH including rewards on the Beacon Chain, which is equivalent to the amount of ETH on the Beacon Chain at the time of the Shepela upgrade, meaning it has had a net zero impact on the network so far.”
Withdrawal requests were dominated by centralized crypto exchanges. Kraken, for one, is in the lead with its withdrawal volume accounting for over 26% of all ETH withdrawals since the upgrade. This is likely related to the recent regulatory crackdown on the US-based exchange’s staking service, which has forced it to return staked ETH to depositors of its platform.
“Other notable principal ETH withdrawers include Binance, Coinbase, and private transaction miner:0xffd, with 13.3%, 12.5%, and 5.44% of principal ETH withdrawn, respectively.” – reads the report.
One month after the upgrade, withdrawals have slowed down considerably, with Nansen data showing that most institutions are currently holding their balances. Institutions such as Lido, Binance, Coinbase, Kiln and Steakfish have accumulated over one million Ether in the past month.
withdrawal behavior
Nansen reports that so far around 73% of the ETH mined from the Beacon Chain has been sent to centralized exchanges. But, most of these CEX are themselves withdrawing ETH, which indicates that most of the tokens sent to these entities are not intended to be sold. Instead, these tokens are for the internal operations of the exchange.
In contrast, the amount of ETH sent from withdrawers to decentralized exchanges represented only 1.23% of the total proportion. According to Nansen, approximately 20% of all withdrawn ETH was sent to diverse addresses not labeled as CEX, DEX, staking, or DeFi, and approximately 6% of all withdrawn ETH was re-staked. was sent for.
Nansen believes that this cohort is less likely to take advantage because they are still running validator nodes, and staking rewards are processed automatically. Therefore, some ETH from partial withdrawers will return to the Beacon chain to rake in a higher yield.
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In the lead up to last month’s Shepela upgrade, many crypto pundits speculated that activating Ether withdrawals could push the price of the underlying asset down.
But the latest data suggests that selling pressure on ETH following the withdrawal has been “somewhat non-eventful.” This is supported by the fact that the amount deposited roughly matches the amount of ETH in circulation.
State of Ethereum: Post Shepela
The Shepela implementation was significant because it enabled the withdrawal of staked ETH from the Beacon chain for the first time. However, the event ignited concerns about volatile ETH entering circulation, potentially perpetuating the selling pressure. The bullish view, on the other hand, argued that the risk of being unable to withdraw was overstated, resulting in more accumulation.
according to nansen reports Who analyzed the condition of Ethereum post-Shapela, observed that the elimination of volatility risks has so far offset the selling pressure from withdrawals. On top of this, a significant portion of the ETH mined is not intended for sale.
The report states that the upgrade has had zero impact on ETH staking.
“Today there are 19.3 million ETH including rewards on the Beacon Chain, which is equivalent to the amount of ETH on the Beacon Chain at the time of the Shepela upgrade, meaning it has had a net zero impact on the network so far.”
Withdrawal requests were dominated by centralized crypto exchanges. Kraken, for one, is in the lead with its withdrawal volume accounting for over 26% of all ETH withdrawals since the upgrade. This is likely related to the recent regulatory crackdown on the US-based exchange’s staking service, which has forced it to return staked ETH to depositors of its platform.
“Other notable principal ETH withdrawers include Binance, Coinbase, and private transaction miner:0xffd, with 13.3%, 12.5%, and 5.44% of principal ETH withdrawn, respectively.” – reads the report.
One month after the upgrade, withdrawals have slowed down considerably, with Nansen data showing that most institutions are currently holding their balances. Institutions such as Lido, Binance, Coinbase, Kiln and Steakfish have accumulated over one million Ether in the past month.
withdrawal behavior
Nansen reports that so far around 73% of the ETH mined from the Beacon Chain has been sent to centralized exchanges. But, most of these CEX are themselves withdrawing ETH, which indicates that most of the tokens sent to these entities are not intended to be sold. Instead, these tokens are for the internal operations of the exchange.
In contrast, the amount of ETH sent from withdrawers to decentralized exchanges represented only 1.23% of the total proportion. According to Nansen, approximately 20% of all withdrawn ETH was sent to diverse addresses not labeled as CEX, DEX, staking, or DeFi, and approximately 6% of all withdrawn ETH was re-staked. was sent for.
Nansen believes that this cohort is less likely to take advantage because they are still running validator nodes, and staking rewards are processed automatically. Therefore, some ETH from partial withdrawers will return to the Beacon chain to rake in a higher yield.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
