Users Are Unstaking Their ETH in Unusual Amounts on Ethereum – What Does This Mean and Why Is It Happening? Cathie Wood Weighs In

There has been a surge in unstaking of staked assets on the Ethereum network, reaching record levels in recent days. According to ARK Invest CEO Cathie Wood, the 2% cryptocurrency transfer reward offered by Robinhood may be behind this sudden unstaking demand. Responding to questions within the community about the sudden surge in Ethereum unstaking demand, Wood stated, “Robinhood offers a 2% matching reward on cryptocurrency transfers. Therefore, venture capitalists and other investors are transferring their staked ETH, which has expired, to companies known as digital asset treasuries (DATs) to raise funds.” Wood added that these companies operate similarly to MicroStrategy (MSTR) and Bitmine (BMNR), with brokerage advisors offering their clients BTC and ETH investments through these types of shares. This massive unstaking drive by validators and long-term investors on the Ethereum network has surpassed the outflow wave caused by Celsius in January 2024. According to onchain data, approximately 693,000 ETH, or $2.6 billion worth of assets, are currently waiting to be withdrawn. This is the largest unstaking wave since the introduction of Ethereum's staking mechanism. Related News: Critical Levels in Bitcoin Have Been Set - What Levels Must Be Exceeded for an Explosive Uptrend? What Level Is Important to Prevent a Decline? Due to the high volume of withdrawal requests, the withdrawal queue has extended to 12 days. However, the amount of ETH waiting to be staked remains at only 296,000 ETH, indicating very low demand for re-staking. According to staking service provider Everstake, validators are unstaking not only for sales but also for strategies like restaking and yield optimization. ARK Invest CEO Wood said some of these unstaking transactions are linked to institutional investors reallocating their staked ETH to digital asset treasury firms like SharpLink Gaming and Bitmine Technologies. *This is not investment advice. Continue Reading: Users Are Unstaking Their ETH in Unusual Amounts on Ethereum – What Does This Mean and Why Is It Happening? Cathie Wood Weighs In