Only 17% of Ethereum stakers are in profit as validator deposits decline
Eighty-three percent of Ethereum (ETH) stackers are underwater and digital assets continue to trade for around $ 1000, Glassnode report July 6th.
Will Sheehan, founder of Parsec Finance, first revealed this on Twitter on July 1st, showing a chart showing that only 17% of Ethereum validators are profitable.
ETH stacker by entry price pic.twitter.com/iHiZRmz7ZU
— Sheehan (@wilburforce_) July 1, 2022
Glassnode confirmed this by saying that almost all deposits that were profitable when ETH was trading for less than $ 1000 were made. The average deposit ETH price is $ 2390.
The dollar value of bet ETH has fallen 65%
According to Glassnode, the dollar value of bet ETH fell 65% as of June 30, despite having more coin units than at record highs.
The dollar value of the bet ETH peaked at $ 39.7 billion in November 2021, when the coin reached a record high of $ 4,878, with 263,918 validators in the beacon chain.
Since then, Ethereum prices have fallen by more than 75% from their all-time highs, pushing down the dollar value of bet ETH.
Daily validator deposits are reduced
The decline in the value of ETH has led to a decrease in daily validator deposits. Previously, the network had “500-1000 new deposits of 32 ETH per day”.
That number has now dropped to an average of 122 per day, the lowest ever.
Over 12 million units of ETH are contracted, which is more than 10% of the total Ethereum in circulation.
According to Glassnode, the decline in daily deposits may not be due to current fears, uncertainties, and suspicions that are pervading the market.
There are concerns about the profitability of the bet ETH as it is not possible to withdraw the bet ETH until the merge is complete.
However, staking derivatives like LIDO are still in high demand as they can be used as collateral for DeFi applications.
When will Ethereum merge?
As the network completes the Merge trial of the Seporia testnet, the transition to Ethereum’s Proof of Stake blockchain is approaching.
Overview of Seporia:
– The merge migration itself was successful
– 25-30% of validators went offline immediately after merging
– The offline validator was due to the wrong configuration
– Since then, offline parties have updated their configurations and validators are up and running.(continuation)
— Terence.eth (@terencechain) July 6, 2022
Meanwhile, the developers have identified problems with Seporia Merge, such as the validator going offline due to incorrect settings. But he added, “temporary interruptions do not delay the merge.”
According to the information available, the final trial of Ethereum Merge is expected to take place on the Goerli network within a few weeks prior to the merge on the Ethereum mainnet.
