Glassnode Estimates $300 mn Ether Sold
While analysts from traditional banks remained mixed on the market impact of ether (ETH) after the much-awaited Shanghai upgrade today, an on-chain report from Glassnode estimates at least $300 million worth of selling pressure.
“We estimate a total of 170K ETH intended to be sold after the Shanghai upgrade,” Glassnode said in a report, citing on-chain data. “We project that only 100K ETH worth $190 mn of the total accumulated rewards will be withdrawn and sold.”
Glassnode said the estimate was made based on a “50% withdrawal credential update, our segmentation of depositors, and assumptions regarding investor conviction, and profitability” by using wallet behavior, period of staking and presence of liquid staking derivative products, such as Lido.
But bulls may have little reason to fear, as the selling pressure is likely to be absorbed quickly and have a smaller overall impact on ether prices.
Banks such as JPMorgan say ether will likely face some selling pressure from the upgrade as more than one million ether staking rewards become instantly available this week.
(With inputs from Shikha Singh)
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