Hal Pres, the founder of North Rock Digital, has noted that projections concerning the selling pressure on Ethereum (ETH) may be too high after the Shapella upgrade. Pres' opinion is backed up by available data, showing only 4,000 Ethereum validators have chosen to exit the validator pool. Of these, 1600 are individual stakers who could potentially sell some of their ETH, but Press believes only 50% of those 1600 will actually do so. According to his estimates, only 25,000 ETH will be sold with another 50-60k on withdrawals that may total up to 85k ETH.
Though it may sound like a significant amount, with the overall supply of ETH, it is quite insignificant. Despite several analysts predicting that the token unlocks could push up selling pressure on ETH, Blockchain analytical firm Glassnode claimed only 170,000 ETH could be sold after the Shanghai upgrade — a number far below the average weekly exchange inflow volume. On-chain data aggregator Arcana concurred, predicting that in the worst-case scenario 6% of ETH's average daily trading volume will be sold in the the first three days. Additionally, CryptoQuant noted that 60% of all staked ETH would be a loss so selling now would be not be profitable. Thus, all indicators point to a less powerful than expected selling pressure.
Naomi Gonzales
- 2023-04-12
Ethereum's Selling Pressure May Not Be as High as Expected
Despite predictions that the unlocking of Ethereum tokens would lead to a surge in selling pressure, data has shown that this might not be the case. Hal Pres, founder of North Rock Digital, estimates only 25,000 ETH will be sold, with a possible total of 85,000 ETH withdrawn.
