More Than 170K Ethereum will be Sold Post-Shanghai Upgrade: Glassnode

While analysts from traditional banks remain uncertain about the prospects of Ethereum (ETH) post the long-awaited Shanghai upgrade, data from on-chain analytics provider Glassnode shared a forecast worth watching out for. Per the data analytics outfit, about 170,000 tokens of the total 18.1 million ETH staked on the Beacon Chain will be sold within the first week of the upgrade scheduled to go live on April 12, 2023, by 10.30 pm

Additionally, Glassnodes predicted that there will be a limited amount of stake released on a daily basis. However, the anticipated upgrade will enable ETH stakers to have access to withdraw their holdings on the proof-of-stake (PoS) mechanism.

Notably, a lot of stakers made deposits into their account in 2020, and up till now they have not been able to access it, hence the reason for the speculation in the market as the staked Ether has been unlocked. Some market analysts worry that the upgrade could result in price volatility since users will be accessing their locked token in the Beacon chain for the first time in a long while.

Meanwhile, the developers are working on a lot of mechanisms and frameworks to avoid the high draining of ETH from the pool at the same time. So far about 253 depositors who own a total of 1,229 validators have signaled to exit their staked Ether, while 214 slashed validators will be forced out once Shanghai is activated fully on the Ethereum mainnet.

Ethereum Staking Decline Ahead of Shapella Upgrade

Recall that a few days ago Glassnode also revealed a slight decline in the volume of Ethereum staking deposits for some weeks, and the drop was attributed to a combination of an increase in regulatory pressure as well as the upcoming Shapella upgrade. 

Also, as reported by thecoinrise.com, the United States regulator, and the Securities and Exchange Commission (SEC) is still bent on referring to ETH as securities even after Vitalik Buterin, the founder of Ethereum has clarified that it is not. This also has contributed to a crackdown on ether staking.

Summarily the market price of ETH after the Shanghai upgrade will largely be dependent on users’ behavior. If stakers continually withdraw from the pool that will mean a bearish run but the reverse will be the case if the staking percentage increases steadily after the upgrade.