Ethereum stackers are facing challenges as the ethereum exchange rate declines. Currently, only 20% remain in the profit zone.
Despite the protracted cryptozyme, Ethereum stacking continues to be a prominent activity among members of the crypto community. However, the lower the direction of ETH, the fewer stackers remain in the profit zone.
According to the latest information from Dune Analytics, the majority of virtual currency community members who placed their own coins to invest in the Ethereum ecosystem are now in the red zone and suffering losses. Only those who have locked their ETH into the Money Zone at rates below the current rate will remain in the Profit Zone.
As the Dune Analytics data shows, this is only within 20% of all coins in the stack.
Of the coins remaining in the USD, a huge category of $600 worth of coins is of concern. The entire Ethereum blockchain is a proof-of-work (PoW) to energy-saving proof-of-stake (PoS) ownership method.
On that day, ETH was trading at about $600, about half its current value. Meanwhile, 80% of the coins in the protocol were blocked at over $1200.
But it is too early to sound the alarm. Most of the early stackers knew from the start that they were investing coins forever. The blocking phase of coins was typically no more than two years.
According to Dune, there is currently 1, 5.9 million ETH on the blockchain. This represents about 13.2% of the general supply of coins, equivalent to about $20 billion at current rates.
Since mid-November, the weekly volume of coins placed on stake has declined rapidly and now remains near its lowest value. Last week it was 25, 000 ETH, according to Dune. Prior to the controversial FTX crypto exchange debacle, over 150, 000 ETH were blocked in the stack each week.
In November, the creators of Ethereum touted the launch of a test mode for withdrawing the coveted coin from the stake. The actual launch of the feature list will roll out as part of the “Shanghai” update promised to users in March of this year. This will allow all validators to steal some of their resources and receive rewards.
However, the manufacturer has approved the release of the Shanghai Update without EIP-4844 in order to eliminate delays in the withdrawal of funds from pledges, which is now considered a significant value. Unable to load all totals. Repeated retries…
If the price of ETH does not rise significantly by then, a global retreat from stacking is unlikely to be a concern. Long-term traders would rather maintain the status quo and be rewarded as validators than take the coin and sell it themselves at a loss.
Meanwhile, Ethereum enthusiasts continue to talk about how the Ethereum PoS model is considered economically sound, that stackers are benefiting from it, and that “revolutions are not being reported every quarter.”
The ETH exchange rate has risen slightly this week, but remains within range. At the time of writing, the price of the kinojirushi is in the $1,250 range, the highest since mid-December. Overall, this is still more than 74% below the all-time high reached in November 2021.