ETH Price Retreats as $1B in Kraken Staked Ethereum Withdrawn

• Ethereum withdrawals from Kraken have caused ETH price to retreat.
• Nansen researchers observed that Kraken had over 330,000 ETH in full withdrawals with a further 175,000 left which is largely principal withdrawals.
• Withdrawals have dropped back to their previously low levels, with deposits outpacing them.

ETH Price Retreats as Nearly $1B in Kraken Staked Ethereum is Withdrawn

The next phase of Ethereum staking withdrawals is underway and the outflow is predominantly due to Kraken. Following a lull this week, staked Ethereum withdrawals have ramped up again and the pending withdrawal queue is being processed.

Kraken’s Large Withdrawal Queue

Nansen researchers observed that Kraken had over 330,000 ETH in full withdrawals with a further 175,000 left which is largely principal withdrawals. The total value of this Ethereum combined is around $975 million. At the time of writing, that queue had been processed and withdrawals had dropped back to their previously low levels, with deposits outpacing them.

SEC Takes Action Against Kraken

In February, the U.S. Securities and Exchange Commission took action against Kraken which was forced to shutter its staking services as the regulator claimed they were offering unregistered securities.

Ethereum Withdrawals Stabilize

According to the Nansen dashboard, there has been 212,528 ETH withdrawn over the past 24 hours however with 103,823 ETH deposited during that same period it indicates more money flowing into Ethereum than out of it at least for now.

Conclusion

The second wave of full Ethereum withdrawals from its staking service appears largely down to one source -Kraken- but things are beginning to settle again as deposit volumes increase once more on the network.