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ETH Pledges on Beacon Chain: A Mixed Bag of Profits and Losses

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According to the data of Binance Research, since the launch of the Beacon Chain (Beacon Chain) in December 2020, more than 16.5 million ETHs (worth 27.7 billio…

ETH Pledges on Beacon Chain: A Mixed Bag of Profits and Losses

According to the data of Binance Research, since the launch of the Beacon Chain (Beacon Chain) in December 2020, more than 16.5 million ETHs (worth 27.7 billion US dollars) have been pledged, of which 31% or 5.115 million ETHs have made profits, and the remaining 11.385 million ETHs are in a loss state. Among them, a considerable number of ETH (about 2 million) were pledged at the price of $400 to $700, representing the earliest pledger in December 2020.

Data: At present, only 31% of the pledged ETHs are profitable

Interpretation of the news:


The data released by Binance Research shows that since the launch of the Beacon Chain in December 2020, more than 16.5 million ETHs (worth 27.7 billion US dollars) have been pledged. ETH, being the native cryptocurrency of the Ethereum blockchain, is used for several operations such as executing smart contracts, transaction fees, and token creation. Pledging ETH can be understood as staking or locking up the asset to participate in the Ethereum 2.0 network that aims to transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.

Out of the total pledged ETHs, 31% or 5.115 million ETHs have made profits, which accounts for a considerable value amounting to $9.9 billion. However, the data also reveals that the remaining 11.385 million ETHs are in a loss state. This situation may arise due to several factors such as market volatility, price fluctuations, and network outages, among others. Major cryptocurrencies, including ETH, faced a bear market during the initial months of 2021, which could be the contributing factor to the losses incurred by the investors who pledged their ETH in Beacon Chain.

The data further elaborates that a considerable number of ETH (around 2 million) were pledged at the price of $400 to $700, representing the earliest pledgers in December 2020. This suggests that ETH enthusiasts and early adopters showed their confidence in the Ethereum network and its transition to a PoS consensus mechanism. Nonetheless, some of these early adopters may be bearing the losses, given the current market prices of ETH.

In conclusion, the data regarding the Ethereum pledges in Beacon Chain indicates mixed results, with profit-makers enjoying substantial gains, while others grapple with losses. Staking one’s assets is always subject to market risks and has a speculative aspect. Hence, investors should diversify their portfolio and engage in staking after thorough research, analysis, and risk assessment.

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