Decoding how Ethereum’s Shapella upgrade impacted the staking market

– The Shapella update triggered the withdrawal of thousands of ETH worth millions of dollars.

-Despite concerns about market impact, Ethereum investors remained optimistic as the price defied predictions and stayed above $2,000.

The recent Ethereum [ETH] Shapella update brought about the long-awaited unlocking of staked ETH. This development was met with mixed predictions from various quarters. While some analysts foresaw a decline in ETH’s market value, it triggered a return to the previously established price range.

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

As the unlocking of staked ETH gradually gained momentum, it begs the question of how stakers have responded to it. Also, what is the volume of stakes that have been withdrawn thus far?

Ethereum stake reduces after unlock

More than 30 hours have lapsed since the implementation of the Shapella update, and it has been met with significant traction. According to Etherscan’s latest data, stakers have withdrawn thousands of ETH worth millions of dollars. As of this writing, close to 150,000 withdrawals of over 270,000 ETH was recorded.

Source: Token Unlocks

Further insights from Token Unlocks revealed that most withdrawals were reward withdrawals, while withdrawals of the principal stake were relatively low. Additionally, it was observed that over 111,000 ETH was deposited following the successful implementation of the Shanghai Hardfork.

Current ETH withdrawal stats

According to the latest report from lookonchain, Etherscan data revealed that the three leading withdrawal addresses were Lido, Figment, and Celsius Network.

As of this writing, Lido stood at the top of the list, with over 150,000 ETH withdrawals. Figment and Celsius Network followed closely with over 7,000 and 6,500 ETH withdrawals, respectively.

In addition to the Etherscan data, Dune Analytics provided a comprehensive analysis of the staking market. According to the data, Lido continued to dominate the market with over 5 million staked ETH, representing over 30% of the market share.

Kraken followed next with over 1 million staked ETH and over 5% of the market share, with Figment coming in third with over 400,000 staked ETH.

However, there are concerns that Celsius and Kraken may need to withdraw all their deposits. While Kraken was dealing with a lawsuit against its staking services by the CFTC, Celsius also faced insolvency issues. These concerns have raised questions about the future of the staking market and the overall impact on ETH’s value.

How much are 1,10,100 ETHs worth today?

Ethereum investors stay positive despite liquidations

As of the time of writing, Ethereum’s daily timeframe chart indicated that it was trading above the $2,000 mark, defying some analysts’ predictions. The press time price trend suggested a positive momentum, with funding rates standing at over 0%, according to Coinglass data, indicating that investors anticipated a future price increase.

Source: Coinglass

Despite the positive outlook, there have been reports of liquidations amounting to over $73 million in the last 24 hours, per Coinglass.

Source: Coinglass