Ethereum Staking Withdrawals Slow Following Initial 1M ETH Exodus

According to the Token Unlocks dashboard, just over a million ETH has been withdrawn from the Beacon Chain following the Shapella upgrade on April 12.

However, the staking balance has not decreased by one million because 370,000 were deposited in the same period.

Therefore, the current staking balance has declined by 640,000 ETH, according to Token Unlocks.

This suggests that some of the unstaked ETH are going back into liquid staking platforms such as Lido.

Ethereum Staking Exodus Slows

The staked ETH balance on Lido has actually increased by around 100,000 since the Shapella upgrade. It is now just over six million, valued at $12.6 billion. Furthermore, the Lido share of the total staked has increased to 34.7%. This is also due to the fact that Lido has yet to enable withdrawals for users of the platform.

There are currently 17.3 million ETH still staked, valued at around $36 billion at current prices.

The Nansen dashboard is showing a slowdown in the pace of Ethereum withdrawals which fell to just 2,415 ETH on April 16 when there was 3,008 ETH deposited.

1/ A brief intro on Ethereum withdrawal mechanisms, how to make sense of withdrawal data, key metrics to look into, and misconceptions to avoid.

Primarily referencing @nansen_ai data but will share alternative sources whenever appropriate as well. pic.twitter.com/5I94dG8SKX

— Martin Lee | Nansen (@themlpx) April 16, 2023

Industry analyst, Colin Wu, reported that there is 892,000 ETH waiting to be withdrawn. “Kraken regulatory factor and Huobi shareholders change are main sources of withdrawals,” he said.

The U.S. Securities and Exchange Commission has cracked down on staking this year. It targeted Kraken’s staking services first, and Coinbase could be its next victim.

According to Nansen, Coinbase accounts for 12.8% of Ethereum depositors, with around 2.37 million ETH staked.

ETH Price Outlook

Ethereum prices have held above the $2,000 psychological barrier over the weekend. ETH hit a new 2023 peak of $2,129 during the Monday morning Asian trading session but has retreated slightly since.

At the time of writing, ETH was trading at $2,098, holding on to last week’s gains. The asset has made an impressive 75% since the beginning of the year and could be leading markets into a new “altseason.”

Total market capitalization has remained steady over the past 24 hours at $1.32 trillion.

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