Whale Purchases $10 Million stETH In The past Day, Here Are Possible Reasons Why

The crypto verse has recently witnessed a massive splash as an unidentified entity dove deep into the Ethereum ecosystem. A recent report from Lookonchain reveals that in a span of 24 hours, the whale has purchased $10 million worth of Lido Staked Ethereum (stETH).

Timeline of Steth

According to a Glassnode report, the amount of ETH that was staked might not be sold as much as anticipated ahead of its Shapella upgrade. This comes as the asset seems to be on a slow day.

Ethereum's Shapella upgrade is just around the corner, but what does it mean for Ethereum ($ETH) staking? The Shapella fork consists of two conjoined upgrades: Shanghai, which includes Ethereum Improvement Proposals (EIPs) related to the execution layer, and Capella, a major update to Ethereum's consensus layer.

With the crypto economy experiencing significant gains over the past week and the price of ethereum rising 11.9%, the market capitalization of Lido's staked ether has increased to $10.3 billion. This recent increase has propelled the token's overall market valuation to the ninth-largest position, according to the crypto market capitalization aggregation website coingecko.com.

The world's largest crypto exchange Binance on Friday announces support for the Ethereum Shanghai and Capella (Shapella) upgrade and will process staked Ethereum withdrawals. However, the staked ETH withdrawals from the crypto exchange will be delayed for a week after the Shanghai upgrade on the mainnet scheduled on April 12.

Ethereum is one of the top cryptocurrencies in the crypto world, and anything that happens will directly or indirectly impact the overall market. The news that Ethereum will release its hard fork, Shangai, and stacked Ether will be released in March will probably improve the prevailing sentiments about the market.

Ethereum (ETH) developers have announced a possible date when the staked ETH withdrawals will begin after the historic Merge upgrade that transitioned the network to Proof-of-Stake (PoS). 

stETH clinched an all-time high in its APR since the Merge Recent market downturn caused by FTX's collapse has made it hard for its price to see much positivity stETH, the tokenized form of staked Ether native to Lido Finance, saw a jump in its annual percentage rate (APR) to an all-time high of 10.

Staking rewards for Ether and Ether-backed liquid staking derivatives shot up in recent weeks. This could be attributed to increased network activity, specifically in ways that result in higher fees for network validators.

On-chain analytics startup Nansen reported massive inflows into staked Ether tokens following the Merge. Ethereum's proof-of-stake upgrade successfully shipped on September 15, EWN reported.

The stETH derivative and its spread to ETH, a closely-followed metric of the confidence in the Merge, sharply narrowed as Ethereum completed its technology transition without a hiccup.