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The Ethereum blockchain successfully completed the Shapella upgrade on April 12, enabling validators to withdraw their staked Ether (ETH) from the Beacon chain after a three-year period. Following over a million ETH in withdrawals during the initial week, the total amount of staked ETH has now exceeded the volume of ETH being withdrawn for the first time since the Shapella upgrade.
Data from the on-chain analytics company Nansen indicates that the current volume of ETH being staked surpasses the number of withdrawal requests. As of April 17, the staking volume reached 124,000 ETH, exceeding the withdrawal volume of 64,800 ETH for the first time. In the past 24 hours, the staked ETH amounted to 94,968, compared to 27,076 in withdrawals. The initial round primarily consisted of partial withdrawals from Lido and older validators. It takes roughly three days to enter the withdrawal queue.
Volume of staked ETH vs withdrawals. Source: Nansen
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The Shapella upgrade was anticipated as a critical juncture for the Ethereum blockchain, as millions of unlocked ETH presented a potential risk for mass token selling. However, contrary to widespread expectations, most validators are opting to re-stake their unlocked Ether. The crypto exchange Binance is set to enable withdrawals on April 19.
Related: Ethereum price metrics hint that ETH might not sell off after the Shapella hard fork
Among the 1 million ETH withdrawn, three addresses re-staked a total of 19,844 ETH. Additionally, three addresses transferred ETH to centralized exchanges after withdrawal, sending a total of 71,444 ETH to various exchanges. Other large holders followed suit, with some directing funds to a Huobi staking address and others to different centralized exchanges, according to data provided by Lookonchain.
The majority of early withdrawals consist of staking rewards, and a few validators, such as Kraken, had to exit to comply with the Securities and Exchange Commission ruling. Currently, 22,231 validators have registered for a full exit out of a total of 574,624, while 910,930 ETH out of the 18.6 million ETH is expected to be withdrawn.
Another significant factor contributing to the decline in withdrawals may be the ETH price, as the average price of staked ETH is approximately $2,137.
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