Funds are withdrawing quickly after major update in leading altcoin Ethereum (ETH). Because investors who have staked their coins are trying to get their rewards. Here are the details…
There is activity in the leading altcoin ETH: Investors are attracting coins
According to blockchain data, after the Shapella update on ETH, more than 150,000 ETHs were withdrawn on the first day that staked ETHs a few years ago were unlocked. About 60,000 partial withdrawals have already been processed. This data corresponds to 16 per block, every 12 seconds, and about 100,000 withdrawals per day. Mostly users get staking rewards, which usually equates to around two ETH. So very few of them withdraw the real staking deposit of 32 ETH.
Thousands more validators are waiting to withdraw money. According to an estimate by Beaconchain, that number stands at 17,500, with 500,000 ETH – about $1 billion – in case of a full withdrawal. In case of partial withdrawal, it is only 40,000 ETH. Interestingly, there has not been a full withdrawal of 32 ETH yet. According to the Ethereum Foundation’s upgrade announcement, it allows “full and partial withdrawals for validators.” So we’ll probably see one at some point, according to experts.
What will Stakers do with their ETH?
Specifically, tons of these withdrawals seem to go to the Lido smart contract, i.e. tokenized staking platform via stETH. In Bitcoin – and in ETH before miners were fired – there are complex price-related dynamics regarding what miners choose to do with their daily rewards. This dynamic has also made its way back to ETH and there was a blast in the beginning, but it is not clear what these stakers are planning to do with the rewards.
They can only spend them on staking or HODL them. They can also leave the actual stake deposit as it is and convert it to something else. An important difference between miners and stakers is that stakers are much more dispersed. Bitcoin miners today are what mining pools used to be; about two dozen miners own huge infrastructure, including the purchase of a full-fledged hydroelectric power station.
You can participate in mining as a hobby, but it is a very laborious job. So the price dynamics associated with mining are a business with crypto as a product. By comparison, joining staking is extremely easy. Generally speaking, they don’t run a business, they don’t have the necessary and expansion-related costs they have to cover through their ‘product’.
Increasing trust in Ethereum
According to experts, the fact that full deposits have not been withdrawn, at least so far, shows considerable confidence in Ethereum. Several people in the community stated that they will withdraw the reward, but not 32 ETH. Because the reward has become a reasonable amount of around $4,000 for most people. In general, investors “seem to be in a rush to enjoy this spring” rather than rushing to exit. cryptocoin.com As we reported, it was thought that unlocking staked coins could cause a sharp drop in price.
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