Ethereum staking deposits have declined slightly in recent weeks due to increased regulatory pressure and the Shapella upgrade slated for April 12.
On April 9, on-chain analytics provider Glassnode reported on the current state of the Ethereum staking ecosystem.
The data revealed that deposit activities are currently low, “due to regulatory pressure and the Shanghai upgrade.”
Financial regulators in the United States have been coming down hard on crypto this year. The Securities and Exchange Commission is adamant that Ether and has cracked down on staking despite there being no official legislation from Congress classifying ETH as such.
The Ethereum network will undergo a long-awaited upgrade on April 12. The Shapella hard fork, also known as the Shanghai hard fork, will enable the phased release of ETH staked on the Beacon Chain.
These two factors have caused the dip in Ethereum staking deposits, according to Glassnode.
The firm also noted that major centralized exchanges such as Coinbase, Binance and Kraken have lost a lot of market share to the liquid staking platform Lido.
