What is the withdrawal status of Ethereum (ETH) staking rewards?

ETH withdrawal status

The Ethereum blockchain has implemented a large-scale upgrade “Shapella (Shanghai + Capella = Shapela)”, and crypto assets (virtual currency) Ethereum (ETH) are being de-staked one after another.

Although there is a cap on the amount of ETH that can be withdrawn for each period, if a large amount of ETH is released to the market intermittently, there are concerns about the impact on the market.

It is possible to move to another provider and start staking again, but the staking balance has decreased by 36,360 ETH after Shapella was executed at 7:27 Japan time on the 13th. According to the data site Token Unlocks, the current ETH withdrawal status is as follows (13th at 11:40).

• Total withdrawals: 38,790 ETH (equivalent to 9.8 billion yen)
• Waiting for withdrawal (including rewards): 441,590 ETH (equivalent to 83 billion yen)
• Expected withdrawal in the next 11 hours: 111,120 ETH (equivalent to 28.6 billion yen)

Source: Token Unlock

Currently, most of Ethereum’s withdrawals are occupied by “partial withdrawals” of rewards only. This is because there are two types of withdrawal requests, an “exit queue” and a “withdrawal queue”, and a “partial withdrawal” is completed only in the withdrawal queue.

According to records calculated based on the number of validators in February 2023, the withdrawal queue will allow up to 16 validators, one slot (≈ block) every 12 seconds. Since there are 7,200 epochs in a day, a maximum of 115,200 validator “partial withdrawals” will be processed per day.

On the other hand, in the case of “full withdrawal”, the “withdrawal queue” will be issued as the validator’s termination procedure. Up to 1,800 validators can process the “withdrawal queue” for full withdrawals per day (*varies depending on the number of validators). With 32 ETH locked per validator, the withdrawal queue limit for full withdrawals per day is capped at 57,600 ETH.

Furthermore, waiting times ranging from a day to a little over a month are required after the withdrawal queue has passed. After this waiting time elapses, the payout queue is put out again, but if there are many payout queues at that time, it is necessary to wait additionally.

According to data site Nansen, the “total amount of staking ETH including rewards” is 19,254,671 ETH. Of this, 677,945 ETH is recorded as “waiting for full withdrawal” (13th at 11:40).

connection:What is the ETH “Shanghai” upgrade?Summary of each company’s view on staking cancellation and ETH selling pressure

Kraken status

By entity (organization), US cryptocurrency exchange Kraken accounted for 32.4% of withdrawal queues.

Source: Rated Network

Kraken’s staking service is in the process of automatically withdrawing staking ETH for US users after Shapella launches. In February 2023, the company was indicted by the U.S. Securities and Exchange Commission (SEC) as unregistered securities, and agreed to pay a fine of approximately ¥3.9 billion ($30 million) and suspend services for U.S. users. ing.

Kraken holds about 7% share of total staking ETH (1,247,680 ETH). Withdrawals from Kraken were estimated between 350,000 ETH and 1.145 million ETH, as staking for foreign users will continue.

connection:How to view the US SEC’s Kraken indictment and consider the impact on Ethereum staking

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