​Glassnode says the Shanghai upgrade will have minimal impact on the ETH rate

What’s new? Experts at analytics service Glassnode believe that there will be no mass sale of ETH coins after the Ethereum network upgrade. A hard fork called Shapella (Shanghai-Capella), which will allow unstake ETH, is expected on April 12 at block 6 209 536. Glassnode estimates that only 170 000 ETH (~$323 million) will be sold after its release, including 100 000 coins (~190 million) accumulated as rewards. This amount is less than 1% of the 18 million ETH in staking, which would rule out a major impact of the sale on the price of the asset.

Glassnode’s report

What else does the report say? Analysts believe that only 70 000 ETH (~$133 million) of the 100 000 coins will become liquid, and even in the most extreme case, the impact on Ethereum prices will be acceptable.

Experts noted that staking providers such as centralized exchanges (CEX) or liquid platforms account for more than two-thirds of all ETH. Currently, the dominant platform is Lido, with 5,9 million ETH and a share of about a third. That said, some providers have withdrawn their validators, Glassnode noted.

Experts also reported that about half of the ETH in staking is making a profit. The selling price of all deposits is currently $2136, while the selling price of ETH is $1403.

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The upgrade allows for partial and full withdrawals. Partial withdrawal removes the validator’s staking reward, reducing the balance to 32 ETH. Full withdrawal disables the node.

Glassnode predicts that at least 45 098 ETH will be withdrawn from the Beacon Chain network between April 12 and 14. Analysts concluded that the withdrawal mechanism would limit any significant impact on ETH prices.

“Based on our analysis, the impact on the Ethereum economy is expected to be a lot less dramatic than many have painted it to be,” Glassnode concluded.

Binance will support unstaking of ETH from after the Shapella hard fork

Support will be available for one week after the upgrade

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As of April 12, 10:20 UTC, ETH is trading at $1870, having decreased by 2,55% per day, according to Binance.

In March, the Ethereum Foundation doubled its maximum reward for identifying vulnerabilities that affect the Shapella codebase to $500 000.