The recent sharp oscillations in the cryptocurrency market have been attributed by some experts to the Ethereum (ETH) staking unlock as one of the likely causes. Meanwhile, the second round of complete withdrawals from staking is in progress, with Kraken, a significant cryptocurrency exchange, taking centre stage.
Around 330K ETH have been fully withdrawn through Kraken, leaving about 175K ETH, mostly in the form of principle withdrawals. It’s crucial to remember that while the exchange itself isn’t directly driving down prices on the market, the withdrawals of staked Ethereum from it are helping to drive prices down.
The delaying nature of withdrawals from staking contracts may have contributed to the market rise that took place a week ago after the news of the Ethereum staking unlock. Because to the restricted amount of ETH that may be unstaked every block, the market’s impact on the ETH’s progressive withdrawal and sale is delayed. Price declines occur as more staked ETH is unlocked and withdrawn, which raises market selling pressure.
The release of staked Ethereum has sparked a rush of withdrawals that have put substantial selling pressure on the market. The price of the second-largest cryptocurrency on the market at the time of publication is $1,918.
The Ethereum staking unlock might not have a detrimental effect on the market in the long run. The market can bounce back and resume its upward trajectory as long as the stake withdrawals are made consistently and the selling pressure eases. As individuals will have complete control over the money they lock up in contracts, more investors may start staking their ETH.
