Only 16% of users received profit from storing Ethereum cryptocurrency

According to Dune Analytics, only 16% of users are currently profiting from Ethereum staking. If the Shanghai update were activated today, investors would suffer quite serious losses, analysts are convinced.

Editor’s note: not financial advice!

The long-awaited Ethereum network update called Shanghai will take place in a few weeks. All the attention to this update is due to the possibility of removing the ETH tokens that have been blocked since the end of 2020 from staking.

Staking is the process of blocking cryptocurrencies to receive rewards, in other words, it is a way to «force» cryptocurrencies to work and generate passive income. The presence of tokens in the wallet allows the investor to join the project network to ensure the blockchain’s performance. As a reward for such work, the user receives rewards in the form of cryptocurrency. Staking is available for cryptocurrencies that use the Proof-of-Stake model to process payments, including Ethereum.

Some members of the crypto community believe that after the launch of Shanghai, there will be a sharp price drop as users will dump their coins to make a profit. Positive investors have a different opinion. They are convinced that the unlocking of Ethereum after a three-year freeze will prove to users that staking does not carry significant risks and motivates them to use the capabilities of this tool to generate additional profit.