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ETH deposits outpace withdrawals as Shapella boosts stakers’ confidence

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Data provided by blockchain analytics firm Nansen revealed that the ETH inflows had started to surpass outflows, indicating that users were restaking their rewards for better returns.
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ETH deposits outpace withdrawals as Shapella boosts stakers' confidence
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  • The staking rate rose from 14.13% on the day of the upgrade to 14.61% as of 19 April.
  • As per Nansen’s dashboard, just about 4.08% of the total locked ETH was waiting to be unstaked.

Since the successful launch of the Shapella Upgrade, Ethereum [ETH] exhibited bullish tendencies. The positive sentiment propelled the king of altcoin beyond the $2,000 level for the first time since May 2022, marking a year-to-date (YTD) gain of 76%.

Read Ethereum’s [ETH] Price Prediction 2023-24

At the time of writing though, ETH retraced to $1,949 as per CoinMarketCap, following the FUD triggered by SEC Chair Gary Gensler’s iffy response on the status of ETH.

However, this takes nothing away from the impetus provided by Shapella. Moreover, data from blockchain analytics firm Nansen revealed that the ETH inflows have started to surpass outflows. This indicated that users were restaking their rewards for better returns.

 

FUD around ETH staking wanes

As per Nansen, the total number of ETH staked reversed its downward trajectory since 17 April. This was marked by increasing deposits and falling withdrawals.

Data from CryptoQuant added more evidence to this assertion. The staking rate, or the percentage of eligible tokens that were being staked, rose from 14.13% on the day of the upgrade to 14.61% as of 19 April.

Source: CryptoQuant

The confidence of users in ETH was also reflected in the withdrawal patterns. As per Nansen’s dashboard, just about 4.08% of the total locked ETH was waiting to be unstaked.

In a CNBC interview, Nansen research analyst Niklas stated that most stakers were applying for partial withdrawals of their accrued rewards and restaking them.

ETH poised for more gains

In what was a testimony to ETH’s bullish tendencies, the supply outside exchanges exceeded the exchange supply by a big margin, at the time of writing.

This ruled out concerns of an immediate sell-off, discussions around which heightened leading to the launch of Shapella.

Source: Santiment

 Is your portfolio green? Check out the Ethereum Profit Calculator

ETH in the derivatives market

Money started to flow in the ETH futures market as the Open Interest (OI) consistently maintained an average of more than $7 billion since the launch of Shapella. This was its best performance in more than a year.

At the time of writing, the OI was $12.07 billion, recording a marginal drop in the last 24 hours. Most of the traders were positioned for an increase in the price of ETH as funding rates across most top exchanges were positive.

Source: Coinglass

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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