Glassnode Estimates 170,000 ETH to be Sold Post-Shanghai Upgrade
According to the latest report from on-chain data firm Glassnode, approximately 170,000 ETH is expected to be withdrawn and potentially sold following the Shanghai upgrade on April 13.
Glassnode: 170,000 ETH Expected to Hit the Market Post-Shanghai
In a recent analysis assessing the impact of the Shanghai upgrade (also known as Shapella) on the Ethereum ecosystem, Glassnode concluded that "the impact of Shanghai will not be overly severe."
Specifically, Glassnode estimates that a total of 170,000 ETH will be withdrawn from the Beacon Chain and returned to the market. Of this, 100,000 ETH (equivalent to $190 million) is anticipated to be sold by validators to realize profits, while the remaining 70,000 ETH will be retained for liquidity purposes.
The highly anticipated Shanghai/Capella hard fork is scheduled to take place on 12-April-2023, enabling the withdrawal of staked #Ethereum.
— glassnode (@glassnode) April 11, 2023
In this extended edition of the Week On-Chain, we shall evaluate the overall Ethereum staking landscape, develop a framework to establish… pic.twitter.com/EVgsz3s6GG
Even in the extreme scenario where all the ETH is sold, Glassnode notes that the selling volume would still fall within the average weekly cash flow into Ethereum.
The report also highlights that third-party staking service users will receive the largest share of the unlocked ETH. However, this segment is expected to have the least selling pressure, as they have not yet realized profits from their initial stake.
ETH Staking Through Institutional and Third-Party Services. Source: Glassnode
Currently, only 253 ETH users are awaiting withdrawal of their staked assets, a figure considered quite small. Most are individual stakers who have been involved since the early days. Glassnode believes that these withdrawal requests are primarily for node adjustments rather than complete exits from the blockchain.
In the event that all nodes were to exit simultaneously, Ethereum's PoS design would facilitate gradual ETH payouts, preventing a mass withdrawal of assets. Thus, even in this "worst-case" scenario, Ethereum's economy could maintain balance for several days to weeks.
For a detailed view of the study, readers can refer here. Glassnode also notes that their statistics are not investment advice and are intended for informational purposes only.
