Eight days following Ethereum’s Shanghai upgrade, CoinShares recently examined the situation with ETH staking withdrawals. On April 12, the Shanghai, or more precisely, Shapella, upgrade went into effect and made staked Ethereum withdrawals possible.
In its study, CoinShares notes that the surge of staked ETH withdrawals that many had anticipated has not yet materialised. The price of Ethereum (ETH) reflects this.
On April 17, Ethereum broke through the $2K barrier and climbed as high as $2,142 before beginning a minor decline. As of the time of writing, ETH had lost the $2K peg due to the market-wide sell-off and was down 1.06% over the previous 24 hours at $1,972.
While there are presently more than 19,500 validators in the withdrawal line, which suggests a waiting time of around 12 days until all have withdrawn, CoinShares calculated that fewer than 5% of validators had withdrawn thus far.
Similarly, the deposit line, which has a waiting time of over four days, has almost 7,800 validators in it.
80% of staked ETH withdrawals made by single entity
Less than 5% of validators have resigned, as was previously mentioned, whereas a single entity accounts for 80% of resignations. This is mentioned in a visual graphic from CoinShares.
It also notes that the Kraken cryptocurrency exchange handled the great majority of withdrawals—more than 80%—after the SEC ordered it to stop offering staking services to users in the United States.
The Securities and Exchange Commission (SEC) accused Kraken of failing to register the offer and sale of its staking-as-a-service programme for crypto assets in February.
Kraken consented to immediately stop providing its staking services or programmes for digital assets and pay $30 million in disgorgement in order to resolve the SEC’s allegations.
