Ethereum Staking Surpasses Withdrawals, Minimal Selling Pressure Detected
Transition to Proof-of-Stake Spurs Confidence in ETH
Thu, 11 May 2023, 11:25 am UTC
Since the full Ethereum proof-of-stake (PoS) transition marked by the Shanghai upgrade over a month ago, the native ETH token has faced minimal selling pressure. According to blockchain analysis provider Nansen, staking deposits for ETH have exceeded withdrawals, reaching a new high of 19.55 million staked ETH at present.
The elimination of unstaking risks has offset any significant selling pressure, as outlined in the report. Despite debates within the cryptocurrency community about the market's response to the upgrade, minimal action has been observed. CoinDesk's Market Index has experienced a 10% decrease since April 13, while ETH prices dipped approximately 7.9% to $1,848. Nansen's report indicates that investors remain confident in the network and the overall assets, even with some withdrawals made to centralized exchanges.
Among the exchanges, Kraken recorded the highest number of withdrawals with over 646,000 ETH, followed by Coinbase with more than 376,000 ETH. However, the majority of withdrawn ETH from these exchanges went towards internal operations rather than selling, according to Nansen's report.
As Ethereum completes its transition to proof-of-stake (PoS) consensus, it brings hope for a more sustainable future in the blockchain industry. The previous proof-of-work (PoW) consensus consumed significant amounts of energy within the cryptocurrency sector. The transition to PoS will enhance the energy efficiency of the Ethereum blockchain while increasing transaction speed. This presents an excellent opportunity for investors to enter the market, as it is likely to experience growth.
Given the current industry focus on environmental friendliness, Ethereum's transition to PoS could generate increased investor interest across all cryptocurrency markets, as PoS emerges as a viable and sustainable alternative. However, it's important to note that the cryptocurrency market is highly volatile, and external factors beyond news events can influence market conditions. Investors are strongly advised to conduct independent risk assessments and carefully analyze any positions.
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