After a hiatus this week, staked Ethereum withdrawals have increased again. The pending withdrawal queue is being processed, and a large part of it is due to the Kraken crypto exchange.
On April 20, Nansen researchers noted that the second wave of complete recalls was underway. They added that Kraken had over 330,000 ETH in full withdrawals with another 175,000 remaining, which are largely major withdrawals. The total value of this combined Ethereum is around $975 million.
At the time of writing, that queue had been processed and withdrawals had fallen back to their previous low levels, with deposits exceeding them.
Second wave of full recalls underway, so you’re definitely wondering who’s behind it and if it’s concerning.
It’s Kraken, with over 330K ETH in full withdrawals. Another ~175K worth of ETH remains, which is largely major withdrawals. pic.twitter.com/iLmf7AHKWx
—Martin Lee | Nansen 🧭 (@themlpx) April 20, 2023
In February, the US Securities and Exchange Commission took action against Kraken, which was forced to shut down its staking services because the regulator claimed they were offering unregistered securities.
Ethereum withdrawals stabilize
According to the Nansen dashboard, 212,528 ETH have been withdrawn in the last 24 hours. However, with 103,823 ETH deposited, the net balance is -108,705.
Is reported that the total amount of ETH still staked is 18.6 million, valued at around $36.4 billion. However, this figure varies depending on which analytics platform you look at.
The Token Unlocks dashboard is reporting a lower figure of 17.3 million ETH staked at the time of writing. The net stake balance has decreased by 615,790 ETH, he notes.
In addition, in the last few hours, deposits have once again exceeded withdrawals. However, there are still 853,138 ETH valued at $1.66 billion in the pending withdrawal queue.
It appears that some of the withdrawn ETH is being redeposited into liquid staking platforms. The total value of Lido locked in ETH has risen slightly since the Shapella update, but the platform has yet to enable withdrawals for its users.
ETH Price Withdrawals
However, some of the withdrawn ETH has been sold as its price has pulled back this week. Over the past day, ETH prices have fallen more than 8% to hit an intraday low of $1,928 during the Asian trading session on Friday morning.
ETH was trading at $1,933 at the time of writing and it looks likely to decline further today. It is also moving in the shadow of big brother Bitcoin, which is down 7% in the past few days.
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