04-13-2023, 04:38 PM
The Shanghai update has no reason to create an ETH sellout - let me tell you why
<!-- SC_OFF --><div class="md"><p>I have seen quite some posts about how this update would create a lot of selling pressure, and thus an ETH dump and lower prices, and this surprises me quite a bit. I usually dont create posts, mostly comments.</p> <p>The thing that baffles me the most is how this is justified: "people can now redeem their staked ETH" .</p> <p>Well, yes, they can, but why would they ? ETH is still down quite a bit, and staked ETH is an investment; that is 2 reasons they would not.</p> <p>​</p> <p>But most of all, while Shanghai enables redeeming staked ETH for ETH, it does not mean there was not a way to swap one for the other.</p> <p>stETH is the token you get when staking ETH on lido. Rocket pool also have his rETH token.</p> <p>They make perfect candidates for liquidity pools. I am pretty sure there are other staked tokens, those two are just examples, i have a neutral stance and no incentive on using these or other.</p> <p>And those LP exists.</p> <p>This means If you dont have 32ETH to stake and make your own validator but still want some staked ETH and the reward that goes with it, you can exchange some ETH for some stETH or rETH.</p> <p>And if you wanted out of staking, you could just do the opposite already.</p> <p>Thats right: there was no need to way for the Shangai update to get out of staking. Which is why it is a non event.</p> <p>There may be people who will redeem their staked ETH for ETH, but they have zero reason to, since they could trade one for the other already. And this is a curve LP, not a shady or obscure project.</p> <p>​</p> <p>Basically, people selling because of Shanghai are panic sellers that never researched crypto one bit to find there were LPs. I guess there will be some.</p> <p>But the only way there would be a massive sellout is if that mentality was what makes most of the ETH staking. And clearly, it isnt.</p> <p>​</p> <p>edited for a clearer explanation of stETH and adding rocketpool's rETH, plus disclaimer i have no stake in either ( nor staked ETH)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/randomFrenchDeadbeat"> /u/randomFrenchDeadbeat </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12kiuei/the_shanghai_update_has_no_reason_to_create_an/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12kiuei/the_shanghai_update_has_no_reason_to_create_an/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>I have seen quite some posts about how this update would create a lot of selling pressure, and thus an ETH dump and lower prices, and this surprises me quite a bit. I usually dont create posts, mostly comments.</p> <p>The thing that baffles me the most is how this is justified: "people can now redeem their staked ETH" .</p> <p>Well, yes, they can, but why would they ? ETH is still down quite a bit, and staked ETH is an investment; that is 2 reasons they would not.</p> <p>​</p> <p>But most of all, while Shanghai enables redeeming staked ETH for ETH, it does not mean there was not a way to swap one for the other.</p> <p>stETH is the token you get when staking ETH on lido. Rocket pool also have his rETH token.</p> <p>They make perfect candidates for liquidity pools. I am pretty sure there are other staked tokens, those two are just examples, i have a neutral stance and no incentive on using these or other.</p> <p>And those LP exists.</p> <p>This means If you dont have 32ETH to stake and make your own validator but still want some staked ETH and the reward that goes with it, you can exchange some ETH for some stETH or rETH.</p> <p>And if you wanted out of staking, you could just do the opposite already.</p> <p>Thats right: there was no need to way for the Shangai update to get out of staking. Which is why it is a non event.</p> <p>There may be people who will redeem their staked ETH for ETH, but they have zero reason to, since they could trade one for the other already. And this is a curve LP, not a shady or obscure project.</p> <p>​</p> <p>Basically, people selling because of Shanghai are panic sellers that never researched crypto one bit to find there were LPs. I guess there will be some.</p> <p>But the only way there would be a massive sellout is if that mentality was what makes most of the ETH staking. And clearly, it isnt.</p> <p>​</p> <p>edited for a clearer explanation of stETH and adding rocketpool's rETH, plus disclaimer i have no stake in either ( nor staked ETH)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/randomFrenchDeadbeat"> /u/randomFrenchDeadbeat </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12kiuei/the_shanghai_update_has_no_reason_to_create_an/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12kiuei/the_shanghai_update_has_no_reason_to_create_an/">[comments]</a></span>