88% of Full-Staked Ethereum Withdrawals are Controlled by Centralized Exchanges
Kraken, Binance, and Coinbase, which are centralized exchanges, are responsible for approximately 88% of all full-staked Ethereum withdrawals.
According to data compiled by 21 Shares Research, centralized exchanges Kraken, Binance, and Coinbase are responsible for approximately 90% of the full-staked Ethereum withdrawals on the Beacon Chain.
Tom Wan, a Research Analyst at 21Co, noted that these exchanges were responsible for the withdrawal of more than 877,000 ETH, or 87.5% of all ETH that has been completely removed.
Kraken leads the pack in terms of validator departures, with over 15,000 exited validators. This is three times more than the nearest competitor, Binance, which has only seen 5,676 validators leave. Coinbase rounds out the top three with 2,849 validators.
These centralized exchanges staked ETH withdrawals in full, and validator departures are unsurprising in light of the regulatory upheaval they are undergoing in the United States.
Kraken was fined $30 million by the U.S. Securities and Exchange Commission (SEC) for neglecting to register its staked ETH service. Due to this, the exchange announced it was promptly processing withdrawals for its U.S. clients.
In the meantime, Coinbase received a Wells Notice from the regulator regarding some of its products, including its staking service. Although the exchange has pledged to fight back, the complete withdrawal of some validators may be one method to limit liability.
Even though Binance is not governed by the SEC, the exchange is also confronting regulatory challenges from the Commodity Futures Trading Commission (CFTC).
According to Nansen’s Shapella dashboard, despite a spate of withdrawals from these exchanges, staked ETH deposits have reached a record high of $18,85 million.
During the past 24 hours, over 46,000 ETH has been deposited, while 24,567 ETH have been withdrawn. BeInCrypto reported on April 19 that Ethereum staking deposits were accelerating. The total value of assets secured on liquid staking protocols such as Lido, Rocket Pool, and Frax Ether has increased by an average of 5% over the past week, according to data from DeFillama.
According to data from Token Unlocks, the net staking balance has only decreased by 458,170 ETH since the Shanghai hard fork.