The price of Ethereum 2.0 fell more than 78% since November’s all-time high. Only 17% are in profit. According to a new report by Glassnode, Ethereum 2.0 investors are now feeling the full impact of the ongoing bear markets. The vast majority of them are “firmly underwater” in their positions.
The second-largest cryptocurrency, $4,891, reached an all-time high in November 2017. This year, Ethereum’s total dollar value reached an incredible $39.7 billion.
The prolonged crypto rout brought Ethereum down to $1,1000. However, the Ethereum 2.0 smart contract’s value plummeted to $25.65 billion. This is 65.2% less than it was nine months ago.
Researchers have pointed out that there has been an additional inflow of almost 5 million ETH since November’s peak.
The report stated that only 17% of staked ETH was in profit, despite ETH prices plummeting to 78% and coins being unable to be withdrawn.
This means that Ethereum 2.0 investors are on average losing 55%.
According to the report, “If we compare this with the Realized price for the entire ETH supply,” 2.0 stakers are currently suffering 36.5% more losses than the general Ethereum market.
Glassnode reports that 62% of all staked Ethereum were deposited prior to the November all-time high.
There are many improvements to Ethereum, including the anticipated transition from a proof of work (PoW), to a proofof-stake consensus mechanism via . The Merge upgrade will also alter the way transactions on the network can be validated.
Ethereum currently relies on energy-intensive transactions similar to the Bitcoin miners. However, after the transition, transactions from stakers will be added to blocks by addresses that have pledged at least 32 Ethereum to a Smart Contract.
Ethereum already has a PoS-based blockchain called the Beacon Chain. It was launched December 2020, and it is currently running in parallel to the current mainnet.
Investors have been depositing their coins since then to act as validators. As of Wednesday, the staked ETH reached 12.98 million coins, which is approximately 11% of Ethereum’s circulating supply.
In recent months, deposits to the ETH 2.0 contract have fallen significantly.
“In 2020 and 2021 it was not uncommon to see 500 to 1000 new 32 ETH deposits per day. The report states that the average weekly deposit volume has fallen to 122 per day. This is the lowest level it has ever been.”