Celsius adds over 428K stETH to Lido’s lengthening withdrawal queue
The bankrupt crypto lender wants its huge stash of staked Ether back, but it could be in for a wait.
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Bankrupt crypto lending firm Celsius is anxious to get its staked Ether (ETH) stash back from liquid staking platform Lido which enabled withdrawals this week.
Celsius initiated the process of withdrawing its Lido Staked ETH (stETH) from the protocol. According to transaction data it has requested the withdrawal of 428,084 stETH in batches of 1,000.
The stash is valued at approximately $784.7 million at current prices. The move follows a transaction of a similar amount of stETH on May 15 in preparation for withdrawal.
Once the withdrawal process is complete, Celsius will receive the equivalent in Ethereum and the stETH tokens will be burnt by Lido.
According to Dune Analytics, the cumulative amount of stETH in the withdrawal queue is 442,000 from 141 requests. It is valued at around $808 million though Celsius is responsible for the majority of it. The total amount already processed is 629 ETH, according to Dune.
On May 16, Lido stated it had enough ETH in its buffers to absorb the requests.
— Lido (@LidoFinance) May 16, 2023
However, larger numbers of Ether withdrawal requests from Lido will have an impact on the network withdrawal queue — which is a dynamic process. Lido is the largest staking provider with a market share of almost 30% so Celsius could be in for a long wait to get its ETH back if requests increase.
Related: 3 reasons why Lido DAO price jumped 40% in a week
Research analyst at 21Shares, Tom Wan, suggested that if unstaking requests exceeded 10% it could cause a larger number of validator exits. This would potentially lead to longer queues for withdrawals.
The capital may be used as part of Celsius restructuring efforts or to partly repay some of its $4.7 billion debts to creditors.
In late February, the crypto lender converted 22,962 wrapped Bitcoin (WBTC) into Bitcoin (BTC) in a transaction valued at approximately $540 million at the time.
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