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 are now gaining access to their ETH again, making them tradable.
These locked coins total 15% of the 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 slight dip in Ethereum’s price, and thinking a tiny drop would happen does make sense based on standard supply and demand expectations. Instead, Ethereum’s risen since the upgrade occurred two days ago.
Even we were predicting a slight price decrease because 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 returning to those prices and would rather avoid taking a loss.
A Maturing Market?
In previous years, just the fear of a potential sell-off would 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.