Ethereum Shapella Upgrade Attracted 400k ETH in Liquid Staking

Ethereum Shapella Upgrade was a soft fork event on April 12, 2023, allowing around $3.37 Billion worth of staked ETH to be un-staked. The upgrade occurred at the block height of 6,209,536, and around 8 Million ETH were locked on various liquid staking protocols. Since the Ethereum Shapella Upgrade, approximately 400,000 ETH worth $763 Million were added to 17 liquid staking protocols.

Ethereum Shapella Upgrade Fuels Liquid Staking

As per the data, on April 30, 2023, the total value locked (TVL) in various liquid staking protocols like Lido Finance, Coinbase’s Wrapped Staked Ethereum, Frax, Rocket Pool, Stakehound, Stakewise, Ankr, Ether.fi, and Bitfrost was over $16 Billion combined.

Moreover, the 30-day statistics show that six out of the top ten protocols ranked by TVL experienced considerable gains, while four registered double-digit growth. For now, Lido Finance dominated, holding 73.6% or 6,206,101 of the 9,431,605 ETH locked in various liquid staking protocols.

Lido’s 30-day matrics show an increase of 5.50%, and Coinbase’s liquid staking platform incurred a loss of 0.64%. TVL of Rocket Pool hiked by 29.24%; at the same time, Frax’s TVL jumped by 31.65%. Stakewise, the fifth-largest liquid stalking protocol gained slightly by 1.23%.

Interestingly, the liquid staking protocols have gained noticeable traction in recent months because they allow users to earn passive staking rewards while retaining control over their assets.

The upgrade allowed around 15% of the ETH supply to be un-staked during the Merge hard fork when Ethereum shifted from energy-intensive Proof-of-Work (PoW) to Proof-of-Stake (PoS) in September 2022.

Ethereum – Price Analysis

At press time, ETH was trading at $1,848.15 with a drop of 2.94%, and its value against Bitcoin lowered by 0.57% to 0.06471 BTC. Its market cap suffered by 2.93% to $222 Billion, and trading volume hiked by 88.64% to $8.59 Billion. At number 2, Ethereum shares a market dominance of 18.83%, with an ROI of 65,220.11%.

The current price is close to its crucial resistance at $2000.9. ETH price tried breaking the point at three instances since May 2022 but could not cross. In April 2023, the price managed to cross the line but was unable to sustain; it can again try to beat the line.

An upward-moving EMA and the current price being above the EMA both give positive indications. However, a downward-sloping MACD creates ambiguity. Post upgrade, considerable growth has occurred; if the positivity continues, the price could move closer to R1. However, it may enter the demand zone, but crossing the point is unlikely.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing