More Than 80% of Ethereum Stakers Are in the Red

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Just a small minor­i­ty of investors that staked Ethereum on the Bea­con Chain are still in prof­it as the asset con­tin­ues to tumble.

A whop­ping 83% of Ethereum stak­ers are now under­wa­ter, accord­ing to research by Par­sec Finance founder Will Shee­han. As Ethereum prices teeter around the $1,000 lev­el, that num­ber could rapid­ly increase should it drop into three digits.

On July 1, Shee­han post­ed a chart reveal­ing that just 17% of Ethereum stak­ers are still in prof­it. Those would have been the ones that staked while prices were below cur­rent lev­els. The major­i­ty staked while ETH was priced between $2,500 and $3,500 accord­ing to the chart.

The chart only shows stak­ing entry prices and does not account for the addi­tion­al rewards in ETH, which are cur­rent­ly around 4.2% APY.

Genesis stakers still up

A Glassnode chart from June 30 con­firms that non-gen­e­sis stak­ers are now in the red. How­ev­er, the chart only shows the price of ETH at the time of stak­ing, not at the time of pur­chase, so those fig­ures could be skewed somewhat. 

Chart – Glassnode

When the Bea­con Chain went live at the begin­ning of Dec 2020, ETH was priced at a lit­tle over $600 as report­ed at the time by Be[In]Crypto.

By the end of the month, it had reached $750 and by Jan 5, it had reached cur­rent prices of around $1,050. So, only those that staked between Dec 1 2020, and Jan 5 2021, would still be above water at the moment in terms of the asset price.

A final cryp­to capit­u­la­tion could push Ethereum prices down to lev­els where all stak­ers are in the red. Daniel Che­ung, the co-founder of Pangea Fund Man­age­ment, actu­al­ly pre­dict­ed a fall in ETH prices to around $500 in the next two months.

At the time of writ­ing, there was 13.6 mil­lion worth of ETH staked on the Bea­con Chain. At cur­rent depressed prices, this is val­ued at around $14.2 bil­lion and rep­re­sents 11.2% of the total cir­cu­lat­ing supply.

ETH still burning

Accord­ing to the Ultrasound.Money track­er, a total of 2.5 mil­lion ETH, cur­rent­ly worth $2.6 mil­lion, has been burnt since EIP-1559 was intro­duced in ear­ly Aug 2021. Burn rates are cur­rent­ly low due to decreased demand for block space, which has dropped aver­age gas fees to around $3.

At the time of writ­ing, Ethereum was chang­ing hands for $1,041 fol­low­ing a drop of 1% over the past 24 hours. The asset has tanked a whop­ping 43% over the past month and is cur­rent­ly down 79% from its Nov all-time high.

There could be more pain to come, how­ev­er, as the ETH draw­down in the pre­vi­ous bear mar­ket was clos­er to 93% and a final flush out has been pre­dict­ed by sev­er­al analysts. 

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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