- Ethereum’s upcoming Shapella fork will allow $34 billion of staked Ether to enter the market.
- Estimates suggest that between $80 million to $100 million of ETH will be withdrawn every day.
- Ethereum staking deposits have declined in the run-up to the Shapella fork.
Ethereum’s upcoming Shapella fork, which is slated for April 12, 2023, will reportedly allow as much as $100 million worth of Ether to flood the market every day. Stakeholders in the world’s second-largest cryptocurrency are gearing up to face the impact of the selling pressure of the massive ETH stockpile. The aftermath of the upgrade will likely see ETH trading well below its current price.
Data gathered by Into The Block gave an insight into the aftermath of the unlocking of $34 billion worth of ETH later this week. According to a tweet made earlier today, all withdrawal requests of staked Ether will have to wait to be processed in order to mitigate an exodus and associated security concerns for Ethereum.
Partial withdrawals of staked Ether will reportedly take between 4 to 5 days. As for one-third of full withdrawals, it is projected to take 100 days, which translates into $80 million to $100 million of ETH being withdrawn every day. This massive withdrawal projection has led to considerable concerns among holders.
Blockchain analytics platform Glassnode recently shared an update on the Ethereum staking ecosystem. The amount of ETH being staked has reportedly taken a slight hit due to regulatory concerns, in addition to the anticipation of the Shapella fork. Glassnode’s data revealed that deposit activities across exchanges are currently low.
The Ethereum community on crypto Twitter seems to be divided about the impact of the staked Ether hitting the market. While some experts have predicted a temporary selling pressure for ETH, others believe that the majority of staked ETH will go to liquid staking projects. The recent decline in the price of ETH may motivate some beneficiaries to hold on to their unlocked Ether instead of selling it.