• Ethereum Shanghai upgrade is on the horizon with 17.4M ETH staked by the community
• The current realized price for Ethereum is $1,380, while the ETH 2.0 deposits realized price is roughly $2,153
• Roughly $8.5 billion of unrealized losses, while most staked ETH is currently at a loss
Ethereum Shanghai Upgrade
The Ethereum network is gearing up for its upcoming upgrade later this month – Ethereum Shanghai. As part of this upgrade, stakers can withdraw their tokens from Ethereum POS smart contracts.
The total staked amount in ETH is roughly 17.4 million; this has grown by 4 million since the merge in September 2022. The current realized price for Ethereum is $1,380, while the ETH 2.0 deposits realized price is roughly $2,153. This implies that roughly 8.5 billion USD worth of unrealized losses exist when accounting for the difference between spot and deposit prices multiplied by total ETH value staked.
The Realized Price captures the average price at which the entire ETH supply last moved on-chain and likewise captures the average deposit price for all staked ETH . This provides valuable insights into how much value has been added or removed from Ethereum over time due to changes in market conditions or user behaviour such as staking activities.
Most of these deposits are currently at a loss given that they were made at higher prices than what they are now worth on-chain which results in an aggregate unrealized loss of 8.5 billion USD across all users who have deposited into PoS contracts so far .
Finally, it’s important to note that this large increase in Ethereum deposits suggests a strong sentiment towards investing long term into Ethereum despite recent volatility and bearish markets overall; indicating confidence behind upcoming projects like Eth 2 and possibly signaling a short term bullish trend ahead for Etheruem’s future prospects .