Kraken will abandon ETH staking and withdraw $1,16 billion

This represents 63% of the coins in the unlock queue

14.04.2023 - 09:20

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What’s new? US crypto exchange Kraken requested 551 000 ETH (~$1,16 billion) to be withdrawn from staking after the Shapella upgrade on the Ethereum network. This represents 63% of the coins in line for unlocking and withdrawal, according to analytics firm Nansen. Kraken previously agreed to pay a $30 million fine and stop providing staking services to US citizens in order to settle Securities and Exchange Commission (SEC) claims. The company has since stated that it will automatically begin withdrawing all ETH for its US customers from staking due to the regulatory action.

Nansen’s data

What data is known? Kraken ranks third in terms of assets in Ethereum staking after platform Lido Finance and crypto exchange Coinbase, according to Dune Analytics. Thus, Lido’s share is 31,18%, Coinbase’s is 12,73% and Kraken’s is 6,84%.

According to Token Unlocks, ~39 100 ETH worth $82,4 million will be withdrawn over the next 11 hours. A total of 17,4 million coins (~$36,74 billion) or 15% of the total asset supply is locked in the deposit contract, excluding rewards.

As of April 14, 09:20 UTC, ETH is trading at $2109, having gained 6,15% overnight, according to Binance.

What is known about Shapella? The upgrade allowing ETH to be withdrawn from staking was activated at 22:27 UTC on April 13. Within the first hour after the hard fork, 12 859 coins were unlocked in 4333 transactions. Glassnode analysts predicted that Shapella would not lead to increased selling pressure, while Bank of America experts called the upgrade insignificant, allowing for increased competition with other blockchain projects.

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