The recent Ethereum staking unlock has led to only minor fluctuations on the market, despite the reintroduction of a significant amount of ETH into circulation. Over $100 million worth of the cryptocurrency has made its way back into the market, but the impact on Ethereum's price has been relatively muted.
Following the opening of withdrawals, the staking contract has seen an average net outflow of around 10,000 ETH per hour, amounting to a total of 66,815 ETH, valued at $128 million. This represents a mere 0.3% of the 18.1 million ETH currently in circulation. The relatively small impact on the market may be due to the fact that the majority of withdrawals consist of reward earnings rather than the full stakes plus rewards.
Well over $100 million in $ETH has re-entered circulation— Andrew T (@Blockanalia) April 13, 2023
In the hours after withdrawals have opened, the staking contract has averaged roughly 10,000 ETH per hour in net outflows, totaling -66,815 ETH worth $128 million, or .3% of the 18.1 million ETH total pic.twitter.com/ya20hqnm6f
Out of the 19.2 million ETH on the Beacon chain, over 19,000 validators are waiting to withdraw 705,155 ETH. Major entities such as Huobi and Kraken have significant pending withdrawals of 38,000 and 22,000 ETH, respectively. It remains to be seen if the withdrawal of these large amounts will have a more pronounced effect on the market.
Interestingly, the trend of withdrawing rewards rather than full stakes suggests that the total amount of staked ETH might decrease over time. However, strong inflows persist, with more than 15,000 ETH being staked within a 24-hour period. This indicates that interest in Ethereum staking remains robust, despite the unlocking of staked funds.
Meanwhile, Lido (LDO) continues to dominate the Ethereum staking landscape as one of the most prominent Ethereum liquidity staking providers.
The total amount of staked ETH may trend downward, but strong inflows show that interest in Ethereum staking remains high. We will see the full impact of Shanghai on Ether's price only in the future.