Ethereum Validators Withdraw $620M ETH in Less Than 2 Days

Ethereum withdrawals are open, and the exit queue for validators is properly full — but new deposits are still flowing in


Vladimir Kazakov/Shutterstock modified by Blockworks


Ethereum has either fully or partially processed nearly 300,000 ETH ($617 million) in staking withdrawals since Shapella went live Wednesday.

Almost 5,600 validators have completely unstaked their ETH in that time, representing 1% of the network’s entire set. 

An additional 17,500 validators are currently waiting in the withdrawal queue, as of midday ET. The combined stake of those exiting validators represents a minimum of about 563,000 ETH ($1.16 billion). 

Post-Shapella, Ethereum caps the number of validator withdrawals per day at 1,800, so the current queue should be cleared in 10 days, although more are expected to join.

Read more: Stakers, Don’t Let the Shanghai Upgrade Centralize Ethereum

There are still more than 563,000 active Ethereum validators, so the outflows won’t make a dent in the network’s overall security. More relevant is how validator outflows are changing ETH’s liquid supply. 

The total number of ETH staked has fallen 0.76% since Shapella went live, per Blockworks Research, which means 137,600 ETH ($283.3 million) in additional liquid tokens. 

CoinGecko reports $16.8 billion in ETH trade over the past 24 hours — vastly more than what’s been unstaked so far.

As for the validators that have already completely exited, crypto exchange Kraken is responsible for 41%, according to Rated Network’s explorer

Those unlocks were potentially inspired by the firm’s SEC settlement from February, which demanded it cease offering staking-as-a-service products, including those related to Ethereum.

There are fresh ETH deposits flowing into the Beacon Chain

Huobi and self-styled “automated wealth creation community” PieDAO come in second and third for validator exits, with 23% and 13% of the recent set, respectively.

However, fresh validators are coming in. As of midday ET, users have staked close to 162,300 ETH ($333 million) in the Beacon Chain since Shapella, according to Blockworks Research data, equal to as many as around 5,100 new validator nodes.

Some speculated that ETH would tank under selling pressure from newly unstaked validators. The earliest stakers locked their tokens in the Beacon Chain back in November 2020 — when ETH was worth $700. 

ETH’s price is now worth triple, currently trading for just under $2,100. ETH went for as much as $4,600 last November, at the peak of the last bull run. 

But, as it turns out, the market has easily absorbed validator liquidations so far, now up 9% since withdrawals were activated.

Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone


Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.



Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet


Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos


As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux


Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity


Connext wants to make using layer-2s and layer-3s a seamless experience


GameStop has been dabbling in Web3 initiatives since at least January 2022