New Ethereum upgrade “Shanghai” could bring $2.4 billion selling pressure

upgrade will be allowed Ethereum prospective Shanghai Shanghaiwhich is set to occur within eight days, will withdraw users’ deposited Ethereum coins.

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A persistent fear in the market, however, is that the imminent launch of Ethereum coins deposited into the network to enhance security in exchange for rewards will see some exchange holders rush to liquidate their coins, and according to some observers, the resulting increase in selling pressure could be as high as $2 billion.

On the other hand, more than 18 million Ethereum has been stored in the network, since the chain was launched Beacon Chain In December 2020.

Although the entire coin inventory cannot be released immediately after the upgrade, about 1.1 million coins can be withdrawn immediately, which were earned as storage rewards.

It also appears that additional selling pressure will come from the bankrupt cryptocurrency lending firm Celsiuswhich is liquidating its own stock of 158,176 Ethereum, to recover at least part of the creditors’ money.

Worth noting, that Bursa Kraken The San Francisco-based cryptocurrency, which recently got into trouble for failing to register an offer and sale of its crypto-asset storage program in the US, may resort to releasing all 1.2 million Ethereum coins stored by investors in the US.

No major sales are likely

The expected supply increase of more than $2 billion appears to amount to only 20% of the average daily trading volume of Ethereum, according to data obtained from the website. CoinGecko.

Partial withdrawals are expected to take between five and six days to process, and full withdrawals may take three weeks to four months, according to an analysis by the company. Shares 21Shares.

In turn said a crypto analyst at a bank Saxoin comment on promotion Shanghai New:

“Potential selling pressure is evenly distributed over a long period, thanks to Ethereum’s daily limit of 16.27M, this should allow buyers to match selling pressure without significantly affecting the price.”

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