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Ethereum staking withdrawals have now entered their third “round,” with Ether (ETH) staking deposits nearly matching them, as indicated by data from the analytics platform Nansen.
The third wave of Ethereum staking withdrawals began to increase on April 24 and continued into April 25. Nansen reports that the cryptocurrency exchange Kraken accounted for a significant share of these withdrawals.
A “round” denotes the duration required to process partial withdrawals and rewards. Nansen indicates that this process currently takes just under four and a half days.
The most recent substantial batch of withdrawals on April 24 amounted to 61,608 ETH in principal and reward withdrawals. Simultaneously, Nansen noted that there were 63,009 ETH in deposits.
This has led to no change in the balance of staked ETH over the last 24 hours.
Ether deposits (illustrated in blue) since April 18. Source: Nansen
In February, Kraken was compelled to suspend its Ethereum staking services following enforcement actions and a penalty imposed by the United States Securities and Exchange Commission, which alleged that it was offering unregistered securities.
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Consequently, a significant portion of the ETH withdrawn initially has originated from Kraken wallets as assets are returned to stakers. Nansen reports that 2.3% of the total withdrawable ETH is still associated with Kraken.
Nansen currently indicates that there are 632,651 ETH in the pending withdrawal queue. At present prices, this is estimated to be worth approximately $1.16 billion.
Third round of principal withdrawals underway
Again largely Kraken, bringing their total principal withdrawn to almost 400k
Source: @nansen_ai pic.twitter.com/jVnnxnl5Jf— Martin Lee | Nansen (@themlpx) April 24, 2023
Prior to the latest wave of withdrawals, Nansen reported a record high in the total amount of staked ETH. This figure reached 18,796,663 ETH, valued at around $34.5 billion on April 24.
Related:ETH staking surpasses withdrawals for the first time since the Shapella upgrade
The current amount, which is slightly below this peak, represents 14.5% of the total Ether supply. Due to the EIP-1559 burning mechanism, the total supply has decreased by 114,077 ETH (approximately $209 million) since the Merge in September.
Fears regarding a significant outflow of staked Ethereum following the Shapella upgrade have been alleviated. Token Unlocks reports that a total of 1.66 million ETH has been withdrawn since April 12, while 1.07 million ETH has been deposited, indicating a continued interest in staking Ether.
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