Ethereum's Shapella upgrade went live earlier in the week, along with this came a large amount of previously locked tokens becoming available for trading - all these coins potentially hitting the open market had some predicting a sell-off.
Those Sell-Off Predictions Appear to Have Been Wrong...
Concerns about a potential sell-off from those who locked up their ETH coins for staking now gaining access to their ETH again, making them tradable.
These locked coins total 15% of the total ETH supply - if just half wanted to sell, it wouldn't have been pretty.
Instead, the Opposite - Ethereum is up 9.58%...
The upgrade has been followed by two days of price gains for ETH - up nearly 10% since the upgrade went live.
Many who said a full blown 'sell-off' was unlikely were still ready to see at least a small dip in Ethereum's price, and thinking a small dip would happen does make sense based on standard supply and demand expectations - instead, Ethereum's been on the rise since the upgrade happened 2 days ago.
The reason even we were predicting a small price decrease was that many people would be taking a loss - these people purchased in the Aug 2021 - April 2022 timeframe when sales were highest and so was ETH's $3000+ price. We assumed these people would continue holding on to their tokens for now, they see it slowly coming back up to those prices and would rather avoid taking a loss.
A Maturing Market?
In previous years it feels like just the fear of a potential sell off would then actually trigger that sell off, this feels like the market is maturing. As more people get familiar with cryptocurrency and its uses, they'll become more comfortable holding onto their tokens, even during periods of potential volatility.
Overall, another strong week for crypto!
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Author: Mark Pippen
London News Desk
Breaking Crypto News
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