Kraken withdraws 330k ETH amid regulatory pressure – deposits outpace withdrawals in staking race

Despite its withdrawals, Kraken is still one of the largest depositors on the Beacon Chain, with 935,488 ETH staked as of press time.

2 min read

Updated: April 21, 2023 at 4:06 pm

Cover art/illustration via CryptoSlate

Kraken is leading the second wave of full-staked Ethereum (ETH) withdrawals, according to Nansen’s dashboard.

Nansen’s data journalist Martin Lee said the U.S.-based crypto exchange has withdrawn over 330,000 ETH. Lee added that “another 175,000 in ETH left, which is largely principal withdrawals.”

Source: Nansen

Since withdrawals were enabled, Kraken has led the table of entities withdrawing assets from the beacon chain. The exchange’s high withdrawal rate is influenced by the regulatory pressure from the U.S. Securities and Exchange Commission (SEC). The exchange paid a $30 million fine for failing to register its staking services with the regulator.

Despite its withdrawals, Kraken is still one of the largest depositors on the Beacon Chain. The exchange still has around 935,488 ETH staked as of press time.

Other entities withdrawing staked ETH

Asides from Kraken, Lido DAO is responsible for most withdrawals. The liquid staking platform accounts for 25% of all withdrawals processed, according to Nansen’s dashboard.

Source: Nansen

Lido is followed by Binance — which has withdrawn 91,190 staked ETH, equating to 6.65% of withdrawn ETH. Other centralized entities like bankrupt lender Celsius and centralized exchange Huobi are also among the top addresses that have withdrawn their staked tokens.

Meanwhile, the top three entities awaiting withdrawals are exchanges — Binance, Coinbase, and Kraken. The firms want to withdraw over 60% of the 1.37 million ETH waiting for withdrawal.

Deposits outpace withdrawals

Staked Ethereum deposits have been outpacing withdrawals for the past few days, according to the Nansen dashboard.

Source: Nansen

According to the dashboard, over 100,000 ETH was deposited in the last 24 hours — while less than 5,000 ETH were withdrawn during the same period.

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Author: Oluwapelumi Adejumo

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