Cryptocurrency Analyst Chris Burniske said in a statement. Ethereum He talked about ETHs that will be removed from staking after the Shanghai update and concerns that the ETH price will drop.
According to Chris Burniske, Opening Withdrawals in Ethereum Could Bring Rise, Not Fall
He argued that the Shanghai update would actually reduce the risk of staking Ethereum and lead to an increase in the percentage of staking ETH in the months following the update.
According to Burniske, these inflows of funds represent a rise, not a fall, for ETH prices.
Burniske continued to address concerns that the update could trigger a “major ETH crash.” He pointed out that currently only 15% of ETH is staked, compared to 50-70% of other cryptocurrencies. Burniske attributed this low rate to the undefined lock period for staking ETH prior to the Shanghai update, arguing that this has deterred many investors from staking their tokens.
Shanghai de-risks Ethereum staking, expect the % of $ETH staked to 2-4x in the quarters following it. Those are bullish flows, not bearish. Expect volatility, but don’t get faked out. pic.twitter.com/lsWTjW9MSx
— Chris Burniske (@cburniske) March 17, 2023
Despite his optimism, Burniske also acknowledged that some fluctuation in ETH prices can be expected after the Shanghai update. However, he urged investors not to “fear” short-term fluctuations and to take a long-term perspective on the potential benefits of staking.
In response to a follower’s tweet suggesting that enabling Ethereum staking withdrawals could accelerate the Ethereum-to-Bitcoin flight, Burniske disagreed. He argued that the remaining 85% of unlocked ETH can already move freely between Ethereum and Bitcoin, and both cryptocurrencies should be viewed as quality assets.
*Not investment advice.
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