Of the bear market has resulted in multiple losses for individuals and even large corporations, and according to recent data Data As shared by crypto analytics site Dune Analytics, the majority is everyone ETH-Stakers lose while fewer stakers stay in the money.
The reason for the result of more losses than gains lies in the market conditions from 2021 after Ethereum Beacon chain has been introduced to date. ETH had a new one All-time high (ATH) reached but is also down more than 50% from the ATH.
Weekly ETH staked falls to the lowest as only 20% of ETH staked is in the money
Data released on Jan. 4 further showed that 80% of ETH stakes are currently in losses. The stakers who happen to be part of the 20% who are still in the money are the ones who staked ETH at prices below current levels.
80% staked ETH underwater | Source: Dune Analytics
According to the data, a significant amount of ETH was staked when ETH was still in the $600 price range – this dates back to December 2020 when the beacon chain was launched. Although ETH has since surged to a point where it is now 50% above 2020 price levels, 80% of ETH currently staked has been staked at prices of $1,200 or above.
After the massive losses recorded in Stakes ETHThe amount of weekly ETH staked has fallen sharply as fewer ETH have been staked since the last quarter of 2022. Only a total of 25,000 ETH were staked in the past week.
Before the extreme market conditions, figures of around 150,000 ETH were being staked per week. Should ETH continue to move lower, massive withdrawals from ETH stake contracts could occur when a withdrawal mechanism is implemented later this year.
Taking the long-term perspective into account
Another narrative worth considering is the long-term perspective. Given that most stakers already had an initial idea to hold their ETH for the long term, they might as well turn a blind eye at current price levels Ethereum.
Also, staking ETH directly or through an exchange would typically come with a set lock-up period of two years. For comparison, according to data reports from Dune, 15.9 million ETH is currently staked, which is 13.2% of the total supply.
However, despite the seemingly never-ending slump, there is still hope for Ethereum and others altcoins. At the time of writing, ETH is up over 3% in the past 24 hours, with $5.2 billion in trading volume over the same period.
source [ETH/USDT] on TradingView.comFurthermore, given the sharp moves higher, a reversal is expected in what appears to be a false move.
Featured image from istock, Dune Analytics and TradingView
Source: Crypto News Deutsch