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$100 Million Ethereum (ETH) Entered Circulation After Unlock: Here's How Price Reacts

Thu, 04/13/2023 - 08:41
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Arman Shirinyan
Large amount of tokens slowly getting withdrawn, but it might not be enough to push ETH down
$100 Million Ethereum (ETH) Entered Circulation After Unlock: Here's How Price Reacts
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The recent Ethereum staking unlock has led to only minor fluctuations on the market, despite the reintroduction of a significant amount of ETH into circulation. Over $100 million worth of the cryptocurrency has made its way back into the market, but the impact on Ethereum's price has been relatively muted.

Following the opening of withdrawals, the staking contract has seen an average net outflow of around 10,000 ETH per hour, amounting to a total of 66,815 ETH, valued at $128 million. This represents a mere 0.3% of the 18.1 million ETH currently in circulation. The relatively small impact on the market may be due to the fact that the majority of withdrawals consist of reward earnings rather than the full stakes plus rewards.

Out of the 19.2 million ETH on the Beacon chain, over 19,000 validators are waiting to withdraw 705,155 ETH. Major entities such as Huobi and Kraken have significant pending withdrawals of 38,000 and 22,000 ETH, respectively. It remains to be seen if the withdrawal of these large amounts will have a more pronounced effect on the market.

Interestingly, the trend of withdrawing rewards rather than full stakes suggests that the total amount of staked ETH might decrease over time. However, strong inflows persist, with more than 15,000 ETH being staked within a 24-hour period. This indicates that interest in Ethereum staking remains robust, despite the unlocking of staked funds.

Meanwhile, Lido (LDO) continues to dominate the Ethereum staking landscape as one of the most prominent Ethereum liquidity staking providers.

The total amount of staked ETH may trend downward, but strong inflows show that interest in Ethereum staking remains high. We will see the full impact of Shanghai on Ether's price only in the future.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.