Ethereum stakers say “nay” to withdrawals as…
- 20% of the total ETH supply has been staked.
- Negative CMF hinted at liquidity exit from the ETH market.
Following the implementation of the Shanghai hardfork, Ethereum [ETH] introduced the ability to withdraw staked Ether from its consensus mechanism. However, contrary to the expectations of many, the upgrade was yet to result in a surge of withdrawals. Instead, it has sparked a renewed wave of deposits.
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According to new data from Dune Analytics, 20% of the total supply of the leading altcoin has been staked. At the time of writing, 23.83 million ETH tokens were staked, with a net flow of 4.46 million ETH recorded since the Shanghai Upgrade went live.
Withdrawals trend downward
After the Shanghai hardfork was implemented on 12 April, ETH daily staking deposits immediately rallied from 460 ETH to 8108 ETH, representing a 1662% increase, data from Glassnode revealed. By 2 June, this peaked at 13,595 ETH daily ETH deposits. While deposits trended downward after this peak was hit, an average daily deposit of 2,627 ETH has since been recorded.
Further, the Ethereum 2.0 network has seen a burst in newly staked ETH since the Shanghai Upgrade. Likewise, the daily count of newly staked ETH rallied to its highest point on 1 June, with 408,940 ETH coins deposited into the staking contract that day.
While many expected the Shanghai Upgrade to open up floodgates of ETH withdrawals that would reduce the value of the altcoin and staking deposits, data from Dune Analytics revealed that following the momentary hike in withdrawals post-Shanghai, this has now slowed down.
Read Ethereum’s [ETH] Price Prediction 2023-24
Before you ape in on the altcoin…
At press time, ETH exchanged hands at $1,885, per data from CoinMarketCap. In the last month, the alt’s price oscillated within the $1750 and $1850 price ranges. This price consolidation led it to commence a new bear cycle on 7 July. A look at the asset’s Moving Average Convergence/Divergence (MACD) indicator confirmed this.
On 7 July, the MACD line intersected the trend line in a downtrend, signaling the re-entry of the bears into the ETH market. This is often taken as a bearish sign, showing that coin distribution had begun to exceed accumulation.
The downward intersection of the MACD line with the trend line coincided with a fall in ETH’s Chaikin Money Flow (CMF) into the negative territory. At a negative -0.12 at press time, the ETH market grappled with liquidity exit.