Majority of ETH Withdrawals Controlled by Two Entities

On-chain analytics firm Nansen provides an analysis of ETH principal withdrawals and the entities behind the move.

It should be recalled that the Shapella upgrade, which enables withdrawals from the ETH beacon chain, was triggered on April 12.

You asked, we shipped 🚀

Now you can see where ETH principal withdrawals are from

At 870,688 ETH, Kraken and Coinbase account for the majority (78.3%) of the principal withdrawals so far

See the table view below ⬇️ pic.twitter.com/hygyBbbu0T

— Nansen | 📍Consensus2023 (@nansen_ai) April 25, 2023

According to Nansen, Kraken and Coinbase account for the majority (78.3%) of the principal withdrawals at 870,688 ETH.

It reports that the third round of principal withdrawals happened within the last 24 hours, and there was also a substantial amount of deposits that kept the total ETH locked at a higher low than the previous wave. It gives the current figure of total ETH locked as 18,629,009 ETH.

Per the information Nansen shared on April 24, 894,671 ETH are waiting for full exit, which is about 4.7% of the total ETH on the Beacon chain, inclusive of reward. A total of 27,809 validators are waiting for a full exit.

Additional info, currently:

• 894,671 ETH is waiting for full exit (which is about 4.7% of the total ETH on Beacon chain incl. rewards)
• 27,809 validators are waiting for full exit

• 86.4% validators have updated to 0x01 withdrawal address pic.twitter.com/rAeQsrIWx7

— Nansen | 📍Consensus2023 (@nansen_ai) April 24, 2023

Meanwhile, the total ETH locked hit a new all-time high since the Shapella upgrades on April 24 at 18,879,775 ETH locked. The total ETH locked in this context refers to all ETH that “is out of circulation,” which includes ETH staked on the Beacon chain, ETH deposited to the Beacon contract but not validated yet and rewards on the Beacon contract.

In similar news, Binance recently announced it was rebranding ETH 2.0 Staking to ETH Staking and introducing Wrapped Beacon ETH (WBETH) on the ETH Staking service, effective April 27. WBETH is a new liquid staking token, where 1 WBETH represents 1 BETH and the total staking rewards accrued by the BETH token on ETH Staking. 

Ethereum sees inflows

According to CoinShares, digital asset investment products saw outflows totaling $30 million last week, ending a six-week run of inflows.

Ethereum, on the other hand, saw inflows totaling $17 million last week, suggesting there is increasing confidence among investors following the implementation of the Shapella upgrade.

After crossing back under $2K last week, Ethereum’s network saw its fees explode to their highest level since May 2022. Though still relatively high, fees have been discounted by 35% since, on-chain analytics firm Santiment reported.