fbpx
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Tuesday, March 28, 2023
Online Crypto College
CREATE FREE ACCOUNT
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
Online Crypto College
No Result
View All Result

Will $26B staked in ETH 2.0 be unlocked and sold after the merge?

May 24, 2022
in Altcoin
Reading Time: 4 mins read
A A
Will $26B staked in ETH 2.0 be unlocked and sold after the merge?
ShareShareShareShareShare
? Want to work with us? CryptoSlate is hiring for a handful of positions!

It has been confirmed that the Ethereum Consensus Layer will be launched as soon as August 2022.

After years of delays, “the Merge” is finally here. However, there is some concern over what will happen to the price of Ethereum (ETH) once proof-of-work is turned off.

Currently, over 13 million ETH is staked in ETH 2.0, and there are concerns that this $26 billion worth of ETH will flood the market following the Merge as investors unstake and sell the news.

Self-proclaimed DeFi educator and member of DeFi Omega Korpi broke down the potential impact of The Merge and the resulting unlocking of millions of ETH.

Staked ETH won’t be unlocked immediately

Korpi pointed out that “the Merge won’t enable withdrawals,” as that is “planned for another Ethereum upgrade” slated to occur after roughly six months to one year. Korpi explained further that:

“To withdraw $ETH, a validator must exit the active validator set but there is a limit to how many validators can exit per epoch.

There are currently 395k validators (active + pending). If no new ones are set up (highly unlikely), it will take 424 days for all of them to exit.”

eth validators
Source: Twitter

Unlocked ETH will be released slowly

Korpi elaborated that even with withdrawals enabled:

“there will be an exit queue which may take more than a year in the worst-case scenario or several months in a more realistic one. The release will be slow.”

Korpi’s final point regarding The Merge is that most users who have staked ETH with validators are most likely ETH-maximalists and are not interested in selling at current prices.

Liquid staking

Further, there are already ways for ETH stakers to access liquidity from their staked tokens. For investors who are not running their validator nodes, it is common to receive tokens such as bETH in return for staking ETH with a validator.

These bETH tokens are tradeable on the open market, thus releasing liquidity. Therefore, those investors who are not already a part of the validator infrastructure do not need The Merge to happen to access their liquidity in most cases.

Suppose investors wish to cash out of their staking position; they can sell their bETH tokens. Korpi curated ETH liquidity staking by the platform into the table below, which makes up just 35% of all ETH staked.

eth liquidity staking
Source: Twitter

In summary, Korpi, who has a backlog of DeFi related information, states,

“I don’t believe we will experience any inflated dumping due to $ETH unlock. It will take place in many months, will be slowly released and many stakers won’t be selling anyhow. My bullish view is intact. ETH will melt faces after the Merge.”

The worry about a vast unlocking of capital after The Merge may be misplaced. Those who want to trade staked ETH can already do so via liquidity products, and those who are running their validators are unlikely to sell on launch.

An investor who has set up a node and has 32 ETH staked over the past few years is invested in Ethereum’s future. It hardly makes sense to stake ETH and then sell and decommission a validator node as soon as it becomes a viable part of the ecosystem. As many in the space have commented,

The Merge may well not be priced in due to skepticism. Often the rule is, “buy the rumor, sell the news.” However, in this case, investors who are not staking their ETH already could potentially be waiting for confirmation that The Merge will be successful.

Get an Edge on the Crypto Market ?

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits


Credit: Source link

Related articles

Crypto Twitter reacts to CFTC lawsuit against Binance

Crypto Twitter reacts to CFTC lawsuit against Binance

March 27, 2023
New Kaspersky report finds 14% of crypto users don’t back up keys, seed phrases

New Kaspersky report finds 14% of crypto users don’t back up keys, seed phrases

March 27, 2023
ShareTweetSendPinShare
Previous Post

LongHash Ventures Partners With Protocol Labs to Launch the Third LongHashX Accelerator Filecoin Cohort – Blockchain News, Opinion, TV and Jobs

Next Post

Interview with Ruud Feltkamp, Owner of AI-driven Trading Bot Cryptohopper – Blockchain News, Opinion, TV and Jobs

Related Posts

Crypto Twitter reacts to CFTC lawsuit against Binance

Crypto Twitter reacts to CFTC lawsuit against Binance

March 27, 2023

Ad Binance, the largest cryptocurrency exchange in the world, and its CEO Changpeng Zhao have been sued by the US...

New Kaspersky report finds 14% of crypto users don’t back up keys, seed phrases

New Kaspersky report finds 14% of crypto users don’t back up keys, seed phrases

March 27, 2023

Ad A third of Americans who own or have owned cryptocurrency have fallen victim to scams and theft, according to...

Shiba Inu (SHIB) Price Prediction for April 2023

Shiba Inu (SHIB) Price Prediction for April 2023

March 27, 2023

Shiba Inu has emerged as one of the most successful meme coins out there. With head-to-head competition with Dogecoin, the Shiba...

SHIB Metaverse Places Clear Emphasis on Empowering Women

SHIB Metaverse Places Clear Emphasis on Empowering Women

March 27, 2023

The massive development of the Shiba Inu ecosystem, the SHIB Metaverse, is placing a clear emphasis on empowering women in...

Nvidia says ‘crypto adds nothing useful to society’ after billions in mining sales

Nvidia says ‘crypto adds nothing useful to society’ after billions in mining sales

March 27, 2023

Ad Nvidia’s Chief Technology Officer, Michael Kagan, has expressed a negative view on cryptocurrencies, stating that they do not “bring...

Load More
Next Post
Interview with Ruud Feltkamp, Owner of AI-driven Trading Bot Cryptohopper – Blockchain News, Opinion, TV and Jobs

Interview with Ruud Feltkamp, Owner of AI-driven Trading Bot Cryptohopper – Blockchain News, Opinion, TV and Jobs

Leave a Reply Cancel reply

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

Putin, Xi Vow to Use Yuan as Russia and China Move to Settlements in National Currencies – Economics Bitcoin News

Putin, Xi Vow to Use Yuan as Russia and China Move to Settlements in National Currencies – Economics Bitcoin News

March 22, 2023
Institutions Dump $126 Million Bitcoin & Ethereum But Buy Solana, XRP

Institutions Dump $126 Million Bitcoin & Ethereum But Buy Solana, XRP

March 21, 2023
Hackers Steal $500,000 Worth of Tokens from Arbitrum Airdrop

Hackers Steal $500,000 Worth of Tokens from Arbitrum Airdrop

March 25, 2023
Stablecoin supply on cryptocurrency exchanges down 50% in 4 months

Stablecoin supply on cryptocurrency exchanges down 50% in 4 months

March 26, 2023
Tether expecting a $700 million profit in Q1 amid SEC crackdown

Tether expecting a $700 million profit in Q1 amid SEC crackdown

March 24, 2023

About Us

We provide the latest crypto news, trading tools, and up-to-date education to students and traders all over the world.

ENROLL FOR FREE

Latest Crypto Headlines

  • Titanium Blockchain CEO Sentenced to Four Years in Prison
  • Vaneck CEO Predicts Bull Cycle for Bitcoin and Gold — Expects Fed Tightening to End Soon – Markets and Prices Bitcoin News
  • Do Kwon’s Montenegro detention extended, registered Serbian company before arrest as fugitive
  • SD lawmakers fail to override Gov. Noem's cryptocurrency regulation veto – Fox News
  • Coinbase Identifies Four Key Innovations for its Layer-2 Network
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$27,847.00-0.34%
  • ethereumEthereum(ETH)$1,764.22-0.74%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.11%
  • binancecoinBNB(BNB)$328.680.48%
  • usd-coinUSD Coin(USDC)$1.00-0.09%
  • rippleXRP(XRP)$0.4876436.23%
  • cardanoCardano(ADA)$0.356168-1.16%
  • dogecoinDogecoin(DOGE)$0.0754450.37%
  • staked-etherLido Staked Ether(STETH)$1,760.54-0.76%
  • matic-networkPolygon(MATIC)$1.08-2.09%
  • binance-usdBinance USD(BUSD)$1.00-0.33%
  • solanaSolana(SOL)$20.65-1.09%
  • polkadotPolkadot(DOT)$6.060.22%
  • litecoinLitecoin(LTC)$92.33-1.53%
  • shiba-inuShiba Inu(SHIB)$0.0000110.92%
  • tronTRON(TRX)$0.064286-0.08%
  • avalanche-2Avalanche(AVAX)$16.92-1.74%
  • daiDai(DAI)$1.00-0.12%
  • uniswapUniswap(UNI)$5.80-0.04%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$27,900.00-0.23%
  • chainlinkChainlink(LINK)$7.17-0.80%
  • cosmosCosmos Hub(ATOM)$11.15-1.58%
  • ToncoinToncoin(TON)$2.163.72%
  • leo-tokenLEO Token(LEO)$3.39-1.80%
  • moneroMonero(XMR)$163.960.62%
  • ethereum-classicEthereum Classic(ETC)$20.12-0.78%
  • okbOKB(OKB)$43.223.02%
  • stellarStellar(XLM)$0.0949002.60%
  • Aerarium FiAerarium Fi(AERA)$7.15-13.10%
  • bitcoin-cashBitcoin Cash(BCH)$123.66-1.69%
  • filecoinFilecoin(FIL)$5.56-0.14%
  • AptosAptos(APT)$11.66-2.02%
  • true-usdTrueUSD(TUSD)$1.00-0.09%
  • lido-daoLido DAO(LDO)$2.20-1.14%
  • hedera-hashgraphHedera(HBAR)$0.060751-1.88%
  • quant-networkQuant(QNT)$123.670.53%
  • crypto-com-chainCronos(CRO)$0.068078-2.21%
  • nearNEAR Protocol(NEAR)$1.93-1.63%
  • vechainVeChain(VET)$0.022637-1.96%
  • ArbitrumArbitrum(ARB)$1.25-3.18%
  • apecoinApeCoin(APE)$4.01-3.08%
  • algorandAlgorand(ALGO)$0.206856-1.89%
  • internet-computerInternet Computer(ICP)$4.90-1.65%
  • blockstackStacks(STX)$0.94-3.66%
  • eosEOS(EOS)$1.140.44%
  • the-graphThe Graph(GRT)$0.139626-1.49%
  • fantomFantom(FTM)$0.439912-1.74%
  • the-sandboxThe Sandbox(SAND)$0.62-3.27%
  • elrond-erd-2MultiversX(EGLD)$42.35-0.76%