The research subsidiary of Binance reveals that only a few Ether holders who staked their Ethereum in Beacon Chain in the past three years are making profits. As a result, the majority of Ether stakers are underwater.
Announcing this in a Twitter post, Binance Research analyzed how much ETH is being staked, how much is liquid, and the number of stakers in profit.
Binance Research revealed the amount of ETH that has been staked since the launch of Beacon Chain in late 2020. It shows that over 16.5 million ETH has been staked via over five hundred and twenty thousand validators.
The staked ETH is worth over $25 billion, and this does not include the node operators who host and maintain multiple validators. Most ETH tokens are staked on the liquid staking provider, Lido, which accounts for almost five billion staked ETH.
While millions of people have staked their Ether, only 31% of ETH stakers are in profit, and the rest are on the losing end.
According to a statement by Binance Research,
“The majority of ETH stakers are underwater and have little financial incentive to sell at the current ETH price (at least on a purely mathematical basis). We note a sizeable amount of ETH (around 2M) was staked at prices in the US$400 - 700 range - this represents the earliest stakers in Dec 2020 - a group that is likely illiquid given that liquid staking was far less known at the time.”
Binance Research also talked about the Shanghai upgrade, which will enable the withdrawal of staked Ethereum. It states that EIP-4895 is the major improvement that comes with the upgrade.
