Celsius’ $800M ETH Staking Extends Ethereum Queue

Coingapestaff
June 3, 2023
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Celsius Shifts $40 Mln Ethereum To Coinbase Amid ETH Price Dip To $2,200

Bankrupt crypto lender Celsius Network has made an $800 million ether (ETH) staking move that has caused significant delays in the Ethereum validator queue. The company deposited $745 million of ETH into staking contracts in just two days, adding to the already long waiting time to deploy new validators on the Ethereum network.

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Celsius Ethereum Staking

Celsius is reshuffling its staked ETH holdings after Ethereum’s Shanghai upgrade allowed withdrawals from staking contracts. This strategic shake-up has caused the queue to stretch to 44 days, with Celsius potentially adding nearly a week of delay, according to Tom Wan of 21Shares.

Previously, Celsius held 460,000 ETH ($870 million) staked with Lido Finance and deployed 160,000 tokens ($300 million) in their own staking pool.

CoinGape reported that it has reportedly withdrawn 428,000 staked Ethereum (stETH) valued at $780 million.

Bankrupt Crypto Lender Case

The reshuffling of staked assets coincides with Celsius’ ongoing efforts to restructure following a bankruptcy protection filing in July. The company faced liquidity issues due to plummeting cryptocurrency prices and a surge in user withdrawals.

Recently, the U.S. bankruptcy court auctioned off Celsius to Fahrenheit, an investment group backed by Arrington Capital, which will take over the lender’s assets, including institutional loan portfolio, staked cryptocurrencies, and crypto mining units.

Read Former Celsius CEO’s 1B Plan…

Celsius Network on May 25 announced the completion of the auction process to transfer the assets to crypto consortium Fahrenheit LLC.

Even after these transfers, Celsius’ wallets still hold around $109 million worth of ETH, according to data from Arkham. However, this influx of staking activity has further strained the Ethereum validator queue, which was already burdened with increased demand since the activation of the Shanghai upgrade on April 12.

Deposits have exceeded withdrawals by nearly $5.5 billion, leaving new participants with a month-long wait to set up validators, according to blockchain intelligence firm Nansen.

 

 

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.