The Value Of Ethereum Staked On Beacon Chain Plummeted, More Than 70% Of Stakers Lost
According to Glassnode data, the daily volume of Ethereum staked dropped significantly in July and has yet to recover.
This decline coincides with ETH price recovering from the catastrophic market crash in Q2 following Terra’s crash. Staking into Ethereum 2.0 was even slower in August, with weekly deposits currently at 162 ETH – the lowest to date.
Glassnode data also reflects a relatively low number of new addresses deposited into Ethereum 2.0.
The total amount of ETH transferred to Ethereum 2.0 deposit contracts via the staking pool has been flat since May, indicating that new investors have yet to enter the market.
Analysts attributed the drop to the anticipation of the Ethereum fork and Merge concerns. According to analyst Hildobby, the bear market has a lot to do with this:
Meanwhile, the value of ETH plummeted due to the bear market. The now profitable deposit was made when the price traded below $1,000 in January 2021 and represents about 30% of all staked ETH.
During the peak of the bear market, reports revealed around 83% of ETH stakers suffered losses. However, as the price started to rise from the low in June, more and more deposits are profitable. Despite people’s indifference to ETH staking, some are still optimistic about The Merge.
Nexo CEO Antoni Trenchev believes that the price of the largest altcoin by capitalization will increase after The Merge because the asset is less inflationary and has more use cases. BitMEX founder Arthur Hayes also shares the same view, predicting The Merge could boost ETH.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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