In recent days, the Ethereum network has experienced a surge in staking withdrawals, primarily due to Kraken, a leading crypto exchange. Interestingly, the volume of deposits onto the network has nearly matched the withdrawals, maintaining a stable balance of staked Ether (ETH).
The third round of Ethereum staking withdrawals and deposits
According to data from analytics platform Nansen, Ethereum staking withdrawals have entered their third “round,” while staking deposits have almost equaled them. The term “round” denotes the days required to process partial withdrawals and rewards, which Nansen currently estimates to be just under four and a half days.
Nansen’s data reveals that Kraken was responsible for many withdrawals on April 24 and April 25. On April 24, the total amount withdrawn, including principal and reward withdrawals, reached 61,608 ETH. In contrast, there was 63,009 ETH in deposits during the same time frame, resulting in no change in the balance of staked ETH over the past 24 hours.
In February, the United States Securities and Exchange Commission (SEC) accused Kraken of selling unregistered securities, halting its Ethereum staking services. Consequently, many early ETH withdrawals have come from Kraken wallets as assets are returned to stakers. Nansen estimates that 2.3% of the total withdrawable ETH originates from Kraken.
Staked Ethereum balance and pending withdrawal queue
Currently, Nansen reports 632,651 ETH awaiting processing in the pending withdrawal queue, valued at approximately $1.16 billion. Before the most recent wave of withdrawals, Nansen recorded an all-time high in the total amount of staked ETH, reaching 18,796,663 ETH (worth around $34.5 billion) on April 24.
The current figure, slightly lower than the all-time high, represents 14.5% of the total Ether supply. Following the Merge in September and the introduction of the EIP-1559 burning mechanism, the total Ether supply has decreased by 114,077 ETH (approximately $209 million).
Fears of a massive exodus of staked Ethereum after the Shapella upgrade have been put to rest. Token Unlocks reports that since April 12, a total of 1.66 million ETH has been withdrawn, while 1.07 million ETH has been deposited. That indicates that there is still a strong interest in staking Ether, despite recent fluctuations in withdrawals and deposits.
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