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- š„ Shapella's done. How'd it go? š
š„ Shapella's done. How'd it go? š
PLUS: Crypto prices are comin' to Twitter š
GM. This is Milk Road, the Magic School Bus of crypto - we make learning fun and easy. Meet your teacher, Ms. Frizzle The Milk Man.
Itās Friday. Weāre feeling like a million bucks. Letās boogie:
Post-Shapella update š
Twitter š¤ eToro
Funding Friday š°
Today's edition is brought to you by CoinTracker, the easiest software for filing your crypto taxes.
POST-SHAPELLA UPDATE š
Well folks, itās officialā¦ Ethereumās Shapella upgrade is complete.
Howād it go?
There were no major network problems (phew)
ETH hit $2k+ for the first time since August 2022
ETH šµ partied like it was 1999. šµ
But now for the million-dollar questionā¦.
How much did people unstake so far? ~874,845 ETH (worth ~$1.8B.)
In total, 17.6M ETH (worth ~$33B) was unlocked. So only ~5% of the supply has been queued to be unstaked so far.
But thereās a catch: Only ~$100M can be withdrawn per day. So, the queue is more backed up than the lines at Disneyland.
It could take ~10 days to process it all, and thatās if the withdrawal amount stays the same. Now, I know what youāre thinkingā¦
āMilk Man, you told me there wasnāt gonna be a lot of withdraws butā¦ thereās over 1 BILLION DOLLARS in the queue!! Not mad, just disappointed.ā
Well, letās all just take a deep breath. Here are 4 reasons why this isnāt as bad as it looks:
1/ Most of these withdrawals are partial
There are two types of withdrawals - full and partial.
Full - all the staked ETH
Partial - the rewards from that staked ETH
Right now, most of the withdrawals are partial ones. This means that validators are withdrawing the rewards they got from staking, not the actual staked ETH.
Btw - the Milk Man predicted this is how it would play out. Most of the rewards (i.e. the yellow sliver below) are whatās being sold off right now.
2/ There have been spikes in deposits
Once the Shapella upgrade went live, there was a big spike in deposits.
This couldāve been some crypto whales or institutions that were waiting to see how the upgrade went. Once they saw everything was as smooth as butter, they jumped into the staking action.
In total, thereās been ~73,872 ETH (worth $155M) deposited since the Shapella upgrade went live.
Btw - the Milk Man also predicted the Shapella upgrade would serve as a catalyst for more staking. Heās 2/2 on predictions. Just call him Milkstradamusā¦
3/ Most of the withdrawals have come from Kraken
Kraken is a popular exchange where people buy and sell crypto. It also used to offer staking services, until the SEC forced it to shut down earlier this year.
Now that staking withdrawals are finally open, Kraken can actually unwind its staking business. Right now, it accounts for ~98% of all fully exited validators (i.e. it withdrew all its ETH and shut down its validators.)
It also looks like ~63% of withdrawals in the queue are from Kraken.
Nansen
4/ Most stakers are still in the red
~70% of all stakers are down on their investments. (i.e. the price of ETH is lower now than when they staked their ETH.)
Dune
With the majority of stakers underwater in the Red Sea, itās highly unlikely that they will want to withdraw their ETH and sell.
So to summarize:
Most withdrawals are partial (i.e. rewards are being cashed out, not the actual staked ETH)
There have been spikes in deposits
Most withdrawals are coming from Kraken (its staking service got shut down, so this was expected)
Most investors are still in the red on their staked ETH
All in all, not a bad first 24 hours. Wonder if āShapellaā will become 2023ās most popular baby girl nameā¦
With the tax deadline just around the corner (April 18th), the Milk Man has been feeling stressed. Between new terminology, calculations, and tracking down old information, crypto tax reporting is no walk down Milk Road.
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Join over 1.7 million CoinTrackers in enjoying the peace of mind that comes with accurate and hassle-free tax reporting.
Sign up for CoinTracker today with coupon MILK30 at checkout for 30% off your tax plan.
TWITTER š¤ REAL-TIME CRYPTO PRICES
Ladies & gents, Twitter has rolled out a brand new featureā¦. *drumroll*.....
Real-time crypto prices. Thatās right, now you can check prices while doom-scrolling Twitter. Addiction1 š¤ Addiction2.
Twitter partnered up with eToro (a trading platform) to make it all happen.
The goal? Put an emphasis on social investing and create a community for crypto users. Now you and your friends can lose money *together*.
Hereās how it all works:
Users search for prices using CashTags. CashTags are the symbol that represents a stock or token, like ETH. All you have to do is throw a dollar sign in front of it -> $ETH.
Users get redirected to eToro if they want to buy the asset. And thereās rumors that Elon wants to integrate trading directly into Twitter down the road. š
Check it out for yourself:
This is cool because both platforms are very social, and Twitter is already a hotbed for crypto and stock investors.
We might not be a fan of all of Elonās recent changes (especially firing our homie Rahul Ligma,) but this is a change we can get on board with.
FUNDING FRIDAY š°
Itās Funding Friday! Raise the roof.
Crypto VC funding might be down ~80%, but crypto companies still raised $85M this week. Hereās who secured the bag:
Sei Labs got $30M to develop its crypto trading-focused blockchain network. Itās run by folks who used to work at Goldman Sachs, Robinhood, & Google. #StarPower
Opside got $4M for its ZKRollup-as-a-service. That makes things cheaper and quicker for developers.
RSS3 got $10M for its Web3-centric decentralized feed file protocol. The goal is to distribute Web3 info across the web via social media, search engines, and AI bots.
Lore got $4M for its platform that lets multiple creators co-own NFTs. Utility = unlocked
Check out the full database of companies that have raised money this week right here.
MILKY MEMES š¤£
That's a wrap for today. Meet us on Twitter to talk all about it. Itās kinda like a family BBQ but better - no screaming kids, awkward photos, or drunk uncles telling weird stories (@MilkRoadDaily)
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ā Milk Road (@MilkRoadDaily)
1:47 PM ā¢ Apr 14, 2023
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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