Ethereum 2.0 Stakers Underwater After 75% Crash From November's All-Time High

Ethereum (CRYPTO: ETH) stakers had locked $39.7 billion in the ETH 2.0 deposit contract in November. Since then, the contract has lost over $25.6 billion in value.

What Happened: According to data from blockchain analytics firm Glassnode, the vast majority of ETH stakers are underwater on their investment after ETH’s 75% decline from its all-time high in November of $4,891.

#Ethereum 2.0 stakers have deposited over 12.98M $ETH, with 62% of it flowing in before the Nov ATH.

However, with $ETH prices collapsing over 78%, and coins unable to be withdrawn, only 17% of staked $ETH is now in profit.https://t.co/2wjWqANfYD pic.twitter.com/hXSpgBRo02

— glassnode (@glassnode) July 6, 2022

Only 17% of the 12.89 million ETH staked is in profit at current prices. At press time, data from Benzinga Pro shows ETH trading at $1,243, gaining 6.5% over 24 hours.

See Also: $30B Ethereum Is Locked In The ETH 2.0 Deposit Contract

“With ETH prices plunging to levels below 2018 ATH, the has been a notable slow-down in 2.0 deposits. Throughout 2020 and 2021, it was common to see between 500 to 1,000 new deposits of 32 ETH per day,” noted Glassnode analysts.

“Currently, the weekly average number of deposits has dropped to just 122 per day, which is the lowest it has been to date.”

It is worth noting that the ETH staked in the deposit contract cannot be withdrawn yet. Stakers will only be able to access their ETH during Phase 1.5 of the network’s transition to Proof-of-Stake (PoS). Although no date has been confirmed by the developers as of yet, Phase 1.5 is expected within the next one or two years.

Glassnode estimates that the average value of deposits was sent in at an average price of $2,390, meaning that ETH 2.0 stakers are holding a loss of negative 55%.

See Also: HOW TO STAKE ETHEREUM

“If we compare this to the Realized Price for the entire ETH supply, 2.0 stakers are currently shouldering 36.5% larger losses compared to the general Ethereum market,” wrote the analysts.

Photo via Visual Generation on Shutterstock