The crypto market is having difficulty finding direction with the effect of winds blowing from different directions. Negative news in the market disables any bullish catalysts. In this environment, a cryptocurrency whale sold heavily in the options market for the leading altcoin. On the other hand, Ethereum staking has seen increased demand after the Shapella upgrade. During this time, about 700,000 validators joined the network.
Cryptocurrency whale is on sale on Ethereum!
As you follow on Kriptokoin.com, the market cannot maintain its upward momentum. This negative mood is whetting the appetite of cryptocurrency bears. According to the post of crypto options analytics platform Greeks.Live, a crypto whale has sold a large amount of ETH. “ETH has seen massive block sales today, with over 56,000 trades with a face value of over $100 million, accounting for 30% of the day’s total Volume,” the analytics platform said. Greeks.Live noted that the transactions are divided into three main parts:
- Bare Weekly OTM Put Option Buying.
- Bear spread，Buy-1800P / Sell-1600P.
- Risk reversal, Buy-2100C / Sell-1600P.
ETH saw large block puts traded today of over 56,000 with a nominal value of over $100 million, accounting for 30% of the day's total Volume. The major trades were divided into three parts:
1) Naked Buy Weekly OTM Put Options
2) Bear spread，Buy-1800P/Sell-1600P
3) Risk… pic.twitter.com/pHo7tpQtBr— Greeks.live (@GreeksLive) August 1, 2023
Ethereum after cryptocurrency staking Shapella
After the Shapella upgrade, Ethereum witnessed an increased demand for staking. One of the main drivers of this trend seems to be ETH whales, which are looking for ways to generate passive income instead of cashing in on their holdings. About 700,000 validators joined the network, despite waiting times stretching to 33 days and 8 hours. In addition, more than 80,000 validators are eagerly queued. This is a testament to the immense confidence and optimism in the future of Ethereum.
Ethereum Active Validators. Source: GlassnodeThere are several factors that distinguish Ethereum staking from the rest. First, the Shapella upgrade brought new staking draw features. This important move caught the attention of investors and directed them towards long-term benefits. Indeed, data from Glassnode shows that more than 22 million ETH has been staked and around 4 million ETH staking rewards worth $44 billion and $8 billion respectively have been distributed. On the other hand, only 12 million ETH has been withdrawn from stake pools since the Shapella update. Another important factor to consider is the deflationary nature of Ethereum, which increases scarcity. A decrease in circulating supply potentially increases the value of Ether. This is an attractive proposition for any investor. More than 3.5 million ETH has been burned since Merge.
Ethereum Balance Staked. Source: GlassnodeETH staking and NFT buying
The decision largely depends on the individual’s risk tolerance. Staking Ethereum provides a more predictable return, while diving into NFTs like CryptoPunks or Pudgy Penguins involves speculative play where prices are highly volatile. Considering that staking Ethereum requires a minimum of 32 ETH, hypothetically the same amount is invested in popular NFTs. In August 2021, CryptoPunks had an average base price of 32 ETH. In the same period BAYC was at 10 ETH and in September 2021 Pudgy Penguins was around 2 ETH. Fast forward to today, CryptoPunks, BAYC and Pudgy Penguins are currently trading at 47 ETH, 29.30 ETH and 4.35 ETH respectively.
When parsed, CryptoPunks offered 17 ETH, BAYC 19.30 ETH and Pudgy Penguins offered modest returns of 2.35 ETH. To put this in perspective, a single CryptoPunks NFT, three BAYC tokens, or 16 Pudgy Penguins could be bought with an investment of 32 ETH at that time. The relevant returns from these options would be 17 ETH, a staggering 57.90 ETH and 37.60 ETH. By comparison, staking the same 32 ETH in August 2021 with an estimated linear reward rate of 5.50% would yield approximately 5.62 ETH.
Price predictions for the leading altcoin
Prominent names such as former Goldman Sachs employee Raoul Pal defend the potential of Ethereum, estimating that its value could increase by 300-400% in the foreseeable future. Mike McGlone of Bloomberg also shares this thought, who thinks that ETH values will potentially reach $6,000 by 2025. However, in retrospect, NFT investments in CryptoPunks, BAYC and Pudgy Penguins could have been more lucrative for those with a risk appetite.
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