Ether price tops $2,100 as Ethereum’s pending withdrawals hit $2.2 billion
Ethereum staking withdrawals vs. deposits
There is currently 17.39 million ether (excluding earned rewards) deposited in Ethereum 2.0 staking, worth $36.54 billion. This represents 15.42% of the total supply of ether.
Yesterday, the net staking balance was positive, with 4,070 more ether deposited than withdrawn. Partial withdrawals amounted to 14,300, and deposits amounted to 18,370.
Since the Merge went live, the net staking balance is nearly -140,000. Withdrawn ether amounts to 247,820, while deposited ETH is less than half of the withdrawn amount at 107,790 coins.
The negative net staking balance indicates that more ether has been withdrawn from staking than deposited. This could be due to a number of factors, such as investors taking profits from their ether holdings or concerns about the security of Ethereum 2.0.
What is Shapella?
The Ethereum blockchain underwent a successful Shapella upgrade on April 12, 2023. The upgrade implemented Ethereum Improvement Proposal (EIP) 4895, which effectively allows users and validators to withdraw their staked ether. It also optimized Ethereum gas fees on certain transactions. The upgrade was met with positive reactions from the community, with many users praising the developers for their hard work. The price of ether (ETH) has been on a steady rise since the Shapella upgrade, hitting a new all-time high of $2,150 on April 13.
However, Kraken, a major cryptocurrency exchange, has been the most notable unstaker of ether since the Shapella upgrade. The exchange has initiated withdrawal requests totaling over 551,000 ETH ($1 billion). Kraken’s unstaking efforts are likely driven by its settlement of charges from the U.S. Securities and Exchange Commission (SEC) for allegedly failing to register its staking program in the country. As part of the settlement, Kraken agreed to pay a $30 million fine.
Overall, the Shapella upgrade has been a success for Ethereum. The upgrade has made the network more scalable and efficient, and it has also allowed users to withdraw their staked ether. The price of ETH has also been on the rise since the upgrade, which is a positive sign for the future of the network.