Crypto asset (virtual currency) exchange Kraken has stopped offering staking services as part of a settlement with the SEC (U.S. Securities and Exchange Commission), which is the next major upgrade for the Ethereum blockchain. Falk) “Shanghai” has increased uncertainty in the supply dynamics of Ethereum (ETH), Coinbase said in a Feb. 14 research report.
Kraken staking accounts for about 7% of all staked Ethereum. But not all of these are from American private investors.
“When Kraken’s unstaking (de-staking) allows withdrawal of staked Ethereum on the Shanghai fork, an additional minimum of 350,000 ETH and up to 11.45 million ETH will be added to the market. It is possible,” wrote David Duong, head of institutional research at Coinbase.
It’s unclear if this will be a source of selling pressure, with investors worried in December that the upgrade “presents a significant downside risk,” but reports say that view has changed as market sentiment improves. pointed out.
Further, although the regulatory environment has clouded the outlook, mitigating factors and “self-correcting mechanisms” should control Ethereum’s circulation, and selling pressure will be fairly limited.
Ethereum’s performance before and after Shanghai is highly dependent on “risk trends when withdrawals become possible.” If the macroeconomic environment deteriorates and the stock market falls, investors may withdraw and sell ether to reduce risk, but institutional investors may not be willing to step in as buyers. .
Conversely, if risk sentiment is positive, we can expect demand to more than offset ether being withdrawn into the market, the report states.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Matt Popovich/Unsplash, modified by CoinDesk
｜Original: Coinbase: Ether Selling Pressure Should Be Fairly Limited Around the Shanghai Fork Upgrade