Ethereum Staked on Beacon Chain: A Mixed Bag of Gains and Losses

02/16/2023 14:56 • AI Insights • 96 views

According to the data of Binance Research, since the launch of the Beacon Chain (Beacon Chain) in December 2020, more than 16.5 million ETHs (worth 27.7 billion US dollars) have been pledged, of which 31% or 5.115 million ETHs have made profits, and the remaining 11.385 million ETHs are in a loss state. Among them, a considerable number of ETH (about 2 million) were pledged at the price of $400 to $700, representing the earliest pledger in December 2020.

Data: At present, only 31% of the pledged ETHs are profitable

Analysis based on this information:

The latest data from Binance Research reveals that since the launch of the Beacon Chain in December 2020, more than 16.5 million ETH, roughly equivalent to 27.7 billion US dollars, have been pledged by users. While staking has enabled the participants to earn rewards and contribute to the security and decentralization of the Ethereum blockchain, the state of their investment is not uniform.

Out of the total staked Ethereum, only 31% or 5.115 million ETHs have made profits so far. This implies that the majority of the Ethereum deposits are currently in a loss state, which could be attributed to the volatile and unpredictable nature of the cryptocurrency market. Ethereum prices have experienced significant fluctuations and corrections since the launch of the Beacon Chain, and this could have led to the depreciation of the staked ETH.

Interestingly, a considerable number of early pledgers (around 2 million ETH) have pledged at the price range of $400 to $700. This could be a testament to their faith and confidence in the long-term prospects of Ethereum as an innovative and visionary platform for decentralized applications and smart contracts.

However, not all of these early staking participants have gained profits; some may have even suffered huge losses. The data suggests that although Ethereum prices were relatively stable during December 2020, they have been subject to steep dips and rises in the subsequent months, which may have negatively impacted returns.

In conclusion, while staking provides an opportunity to earn a passive income for Ethereum hodlers and is an essential step towards the migration to Ethereum 2.0, it still involves some degree of risk and uncertainty. Stakers should consider the market conditions as well as their investment goals and strategies before committing their assets to staking.

Overall, the current state of staked Ethereum on the Beacon Chain reflects a mixed bag of fortunes, with some investors gaining profits and some incurring losses.

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Ethereum Staked on Beacon Chain: A Mixed Bag of Gains and Losses

Data: At present, only 31% of the pledged ETHs are profitable

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