Withdrawal Of 1 Million ETH Does Not Affect Ethereum Price Performance

Ethereum cryptocurrency. (Photo; Doc. Unsplash)

JAKARTA - Ethereum is one of the most popular cryptocurrencies in the world after Bitcoin, with a market cap of more than IDR 3.5 quadrillion. The price of Ethereum today is trading in the range of IDR 29 million per coin, up 5.8 percent in the last 24 hours.

The increase in the price of Ether (ETH) in the last few days has been in the spotlight on the crypto market. However, along with the price increase, there is an interesting phenomenon that occurs in the Ethereum ecosystem. An event that has attracted the attention of many parties, especially the Staking Ether actors.

The price of Ether (ETH) managed to record a very strong performance, surpassing the $2,100 (Rp31 million) level and hitting the highest point in the last 11 months. Currently, ETH is trading at 2,087.83 US dollars (Rp30 million).

On April 15, there was a withdrawal of ETH of 392,800, which is the largest daily withdrawal in history. Of the total active validators, nearly 87 percent or 469,000 of the 540,000, can now attract the ETH they have staked.

This strong price performance occurred despite more than 1 million ETH being withdrawn from the Ethereum Bantu Chain in just the first four days after the Shanghai hardfork upgrade. In addition, all of these withdrawals came from nearly 477,805 transactions according to Chainbank trackers.

This withdrawal also has the potential to lower the level of staking participation, which is one of the features in Ethereum 2.0, a new version of Ethereum that is faster and more energy efficient. However, ETH withdrawals don't necessarily mean negative things to the price of Ethereum. It is possible that this withdrawal is temporary and users will return to staking after seeing better market opportunities or conditions.

Prior to the Shapella upgrade, market experts had different opinions about how this upgrade would affect the price of ETH. This is related to the fact that the Shapella upgrade allows the interesting ETH validators they have staked. This is the first time since the launch of the Chainbank that withdrawal facilities are available for users.

However, the price of ETH rose more than 10 percent in four days after the Shapella upgrade, although there was a little skepticism at the start. Speaking to CoinDesk, Greg Magadini, director of derivatives at crypto analytics firm Amberdata, said Ethereum would soon strengthen.

"Shapella's upgrade is the first time we have regained enthusiasm in the Ethereum market. On Ethereum, developers have proven that they can follow their vision. We have reached an important milestone and this brings back validity and credibility to Ethereum."

Speaking to CoinTelegraph, Lachlan Feeney, CEO of blockchain consulting and development firm Labrys, said that validators were staking back on the Chain peninsula. "Most of the stakings withdrawn over the past few days have actually returned to the Chainbank because validators are looking to increase their interest rates. So, net staking is currently increasing," said Feeney.

In today's macro environment, many early stakers are skeptical and want to sell the ETH they have been staking after nearly 30 months of waiting. However, in the medium to long term, Feeney expects the number of Ether stakings to increase over time. This will further strengthen the Ethereum blockchain at the consensus level.

"Because Shapella is an event that greatly reduces risk, in the medium to long term, more, not less, ETH will be staked. We hope that in the not too distant future, we will reach a record high in the number of Ethers being staked," Feeney said. quoted from CoinSpeaker.