Crypto exchange Kraken is pulling over $1 billion in Ethereum from its staking pots. The move follows its dispute with the U.S. Securities and Exchange Commission (SEC).
Over 555,000 ETH, just under $1.2 billion, crypto exchange Kraken plans to cash out of the Ethereum network’s staking pot. Data from the blockchain analytics platform Nansen show this. The request comes shortly after the successfully implemented “Shanghai” upgrade. This allows users to cash out their Staking Rewards, finalizing Ethereum’s move to Proof of Stake.
According to Nansen, Kraken is responsible for nearly 63 per cent of all payout requests. By comparison, the crypto exchanges Coinbase and Huobi follow far behind with 11 and five per cent, respectively.
However, the high value is not surprising given the legal turmoil with the U.S. Securities and Exchange Commission (SEC). In February, the agency fined Kraken $30 million and ordered the trading platform to shut down its staking service for U.S. customers. Kraken then announced it would remove ETH from its staking process after completing the Shapella update. The stake accounts for nearly half the amount the crypto exchange stakes on Ethereum’s network.
In general, however, things remained quiet for Ethereum after Shapella. Some experts expected a sell-off in the second most valuable cryptocurrency. The data service provider CryptoQuant justified the lack of a wave of selling by saying that most Ethereum investors were still in the loss zone. “Normally, selling pressure results when market participants sit on extreme gains. That’s not the case right now with the stalled Ether.”
Instead, the ETH price has risen since the update was introduced, breaking through the $2,000 mark for the first time since May 2022. BTC-ECHO market expert Stefan Lübeck also sees the concern of a possible sell-off as unfounded so far. He says the favourable market situation would instead let investors hope for higher prices. “Should ETH reach US$2,700, things could get exciting again.”