- After the Shanghai hard fork on Ethereum took place, from April 12 to today, more than 1 million ETH have been withdrawn from the Ethereum network.
- With these withdrawals, more than $2 billion dollars have been unlocked.
- Lido DAO is the largest responsible for withdrawals that the Ethereum network has experienced, with 24.6% of withdrawals processed.
On April 12 at 22:27 UTC the Shanghai hard fork of Ethereum took place. This update specifically allowed withdrawals for users who had staked ETH to secure and validate transactions on the blockchain.
Half an hour after it happened, 285 withdrawals had already been made for about 5,413 ETH, according to beaconcha.inand according to the platform from April 12 to today, more than 1 million ETH have been withdrawn from the Ethereum network. Is it necessary to worry?
It is important to note that in a proof of stake system, the network relies on users locking their cryptocurrency to secure and confirm new blocks of data, and as many will know, since last year Ethereum switched from proof of work to proof of stake with The Merge.
For this reason, it is so important that ETH investors study the behavior of ETH withdrawals and deposits in the network, since its security and stability depend on it.
Users withdraw their ETH that was blocked
According to beaconch.in, the more than 1 million ETH has been withdrawn in 491,000 withdrawals processed. So if one ETH equals $2,000, se more than $2 billion dollars have been unlocked.
According to nansen, Lido DAO is the largest responsible for withdrawals that the Ethereum network has experienced, with 24.6% of withdrawals processed. In second and third place are Kraken and Binance with 19.4% and 8.19%, respectively.
When it comes to pending withdrawals, centralized crypto exchanges are the leaders. Kraken currently holds 44% of the ETH pending withdrawal, while Binance and Coinbase hold 21.1% and 13.6%, respectively.
For those who may not know, this process of pending withdrawals is precisely intended to prevent the network from being vulnerable.
Some continue to bet on the net
Despite the recent withdrawals, Nansen’s data shows that over the past 24 hours, 102,384 ETH have been deposited, making net deposits 12,742 ETH.
In fact, in the graph above obtained from Nansen it can be seen that there has been a slowdown in ETH withdrawals, especially as the first wave of validators claiming their rewards passes.
It is important to note that the staking process on Ethereum has been going on for several years now. Therefore, there are users who have kept their ETH locked in the network for a long time and it is normal for them to want to withdraw their accumulated earnings.
The expectation is that, as the days go by, the withdrawals slow down and little by little the ETH that is blocked again in the network begins to increase.
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