Cryptoverse: Ethereum upgrade to unlock $33 billion

economictimes.indiatimes.com:

A new software upgrade to the Ethereum blockchain, dubbed Shapella, will let market players redeem their «staked ether» — coins they have deposited and locked up on the network over the past three years in return for interest. About 15% of all ether is staked, totaling $33.73 billion in market value, according to data from Dune Analytics. Up to 1.1 million ether will be ready for withdrawals in the week following the revamp of the blockchain, estimated Sreejith Das, CEO at Attestant, a company that facilitates the staking of ether. That would be worth nearly $2 billion, based on the latest ether price of about $1,860.

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Traders hunting an edge are now trying to figure out how this sudden ether windfall might hit prices. It's difficult to judge though, said Robert Quartly-Janeiro, chief strategy officer at crypto exchange Bitrue. «The only thing certain is that the Shanghai hard fork will bring about some short-term volatility,» he added. Some corners of the market are worried that unlocking staked coins could lead to massive withdrawals and a wave of selling, which could push prices rapidly lower. Yet only about 29% of all ether staked by volume is currently in profit in dollar terms, which would mean most would be sold at a loss, according to Bundeep Rangar, CEO of blockchain investment firm Fineqia International. «It seems unlikely, therefore, that much of the staked ether will be sold,» Rangar