Ethereum 2.0 Locked ETH Holds $15 Billion in Losses

Data shows that the Ethereum offering locked into an ETH 2.0 contract held an unrealized loss of nearly $15 billion just a few days ago.

Realized price of ETH 2.0 deposit 44% more than normal offer

According to a special report by Glassnode and CoinMarketCap, Ethereum locked into a 2.0 contract is currently experiencing huge losses.

The relevant metric here is the “maximum achieved,” which is a method of calculating capitalization by multiplying each currency in circulation by the price at which it was last moved, and taking the sum.

This differs from the usual “market cap,” where the total number of coins in circulation is multiplied by the current Ethereum price.

From this realized maximum, the average “realized price” can also be derived by dividing the indicator by the quantity of supply traded.

Now, here is a chart comparing the realized price of the total ETH market with the bid price restricted to the staking contract:

Looks like the staked ETH is being held at an average realized price of $2.389k | Source: Glassnode and CoinMarketCap's On-Chain Analytics Issue One — July 2022

As you can see in the chart above, the overall Ethereum market realized price was around $1.6K a few days ago when the report was released.

After that, the realized price of pegged ETH was just under $2.4K. At these values, the realized price of the closed offer differed from the regular one by 44%.

The chart also includes data on the unrealized gain/loss from the fortified offer. It appears that at the time of writing, the ETH 2.0 contract coins have incurred unrealized losses totaling nearly $15 billion.

Despite this, since the release of the report, Ethereum has noticed a significant price jump, so the current losses in the fortified supply and the overall market price will now change.

However, the realized price of the dungeon bid won’t budge much, which means that the locked coins will remain completely underwater at the current price.

Thus, the fact remains that the 13 million ETH deposited in staking contracts is currently losing much more than the regular supply.

Ethereum price

At the time of writing, ETH price is hovering around $1.7K, up 10% in the past seven days. Over the past month, the value of the cryptocurrency has gained 58%.

The chart below shows the currency price trend over the past five days.

Ethereum price chart

The value of the crypto seems to have flatlined during the last few days | Source: ETHUSD on TradingView

A few days ago, Ethereum noticed some sharp upside as the coin price rose to $1.7K. However, since then, ETH has been mostly lateral consolidation.

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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