60% of Staked Ethereum Remains ‘Underwater’ Despite Local Price Highs

The amount of staked Ethereum is continually increasing. However, more than half of it remains underwater in terms of gains made despite the ETH price recently hitting local highs.

A large portion of all the Ethereum staked is still underwater, according to research shared by analysts on Feb. 18.

The chart shows that 60% of all staked ETH was locked in at a price of $1,600 or higher, while the remaining 40% that was staked at lower prices remains in profit.

More than 2 million ETH were staked at prices between $500 and $700. This would have been staked when the Beacon Chain launched in December 2020, and the asset was trading for around $600.

Ethereum Staking Still Bullish

More than half of Ethereum stakers being in the red doesn’t sound very bullish. However, the situation worsened last year when ETH prices plunged as low as $1,000. At this level, more than 80% of staked ETH was underwater, as reported by BeInCrypto at the time.

The chart shows that a lot of Ethereum was staked at prices between $2,500 and $3,500. Furthermore, it could be a while before those levels are revisited as the bear market continues.

There are currently 16.7 million ETH staked, according to Ultrasound.Money. At current prices, this is valued at roughly $28.2 billion, representing 13.8% of the entire supply.

That supply has shrunk by around 29,192 ETH, or $49.2 million, since the Merge in September 2022. Furthermore, ETH issuance is currently deflationary, with the supply declining by around a quarter of a percent per year.

The approaching Shanghai upgrade will enable the phased release of staked Ethereum by the end of March. Analysts have predicted a huge boost for liquid staking platforms, which offer better yield opportunities than staking directly.

On Feb. 18, DeFiLlama reported that more than 7 million ETH were staked on liquid staking protocols. This is roughly 42% of the entire amount staked and valued at $11.8 billion.

However, the recent enforcement action by the U.S. Securities and Exchange Commission may mean that Americans have to search overseas for crypto staking opportunities.

ETH Price Outlook

Ethereum prices have remained relatively flat over the past 24 hours. As a result, ETH was trading at $1,687 at the time of writing.

The asset hit resistance at just over $1,700 over the weekend and has since fallen back slightly during the Monday morning Asian trading session.

ETH remains down 65.4% from its November 2021 all-time high of $4,878.

Ethereum Price Chart by BeInCrypto


BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *