Hi HODLers and Hiveans,
As you probably heard, Ethereum Shanghai update has been postponed by a few weeks. Even if Ethereum dev team claims they never set a deadline in stone, market participants expected this upgrade would be completed in March. Seems it will be more like April.
Ethereum staking launched back in December 2020, the network just embarking on its journey to a proof-of-stake consensus.
Those who locked up their funds haven’t been able to unstake since then. This has led to speculation that once stakers can withdraw their ETH, they would dump on the market. I would have expected something like this but Ethereum price is down so there might be less stakers willing to take a loss.
As Dune pointed out:
In fact, in dollar terms, since staking began, just 16% of stakers are in the money. Were the upgrade to be executed today, the vast majority of users would be hit with some pretty serious losses.
How this upgrade could be bullish?
I kind of agree with the Bulls out there. The possibility to unstake easily decrease the risk profile.
The risk profile of staking drops tremendously once people can see that, yes, if they put their money into this black box they can earn a yield and can take the money out of that black box whenever they like.
What are your thoughts on the Shanghai Update? Bullish or Bearish?
Stay safe out there,