Celsius: Revamping Staking Game with Massive Ethereum Moves

Celsius, a crypto lender facing bankruptcy, has decided to restake the Ethereum it previously withdrew. This move has resulted in a further delay in the staking activation queue.

Researcher Tom Wan from 21Shares revealed that Celsius staked 396,000 Ethereum in the first two days of this month despite its financial troubles.

Arkham Intelligence, a blockchain analytical firm, confirmed these activities and stated that the bankrupt lender had moved nearly $1 billion worth of assets through on-chain flows.

These recent deposits follow Celsius’ decision to withdraw most of its staked ETH on Lido, which was part of its restructuring plan. The company, however, is not completely exiting ETH staking; it is simply changing its staking methods.

Celsius Staked 396k $ETH (92.5% of the total $stETH Withdrawal) in the past 2 days. 32k ETH still in the $stETH withdrawal wallet

Thanks to Celsius, We are seeing new ATH in Daily ETH Deposit to the Beacon Chain

🥇1 Jun: 409k (71% from Celsius)
🥉2 Jun: 231k (44% from Celsius) https://t.co/GtlXCIM1Gw pic.twitter.com/Cf2Wbg1TD9

— Tom Wan (@tomwanhh) June 3, 2023

Celsius has been actively managing its withdrawals since the Shanghai upgrade in April. Initially, it unstaked 6,000 ETH from the Beacon Chain. Subsequently, it withdrew all its staked ETH on Lido Finance, making it one of the most active participants in the industry since withdrawals became possible.

As of now, Celsius has withdrawn 428,000 ETH from Lido, with 32,000 ETH still pending withdrawal from the staking protocol. Additionally, the company utilizes Figment, an institutional staking provider, for its ETH staking activities.

After keeping the withdrawn ETH in its unstaking wallet for approximately two weeks, Celsius divided the funds between two deposit wallets: one labeled “Celsius’s ETH2 Deposit” and the other “Staked ETH.”

Celsius is making moves to stake all the ETH they currently hold, representing movements totalling almost $1B in on-chain flows.

Over the past 24 hours, they have staked over $600M of ETH, with their rate of deposits showing no sign of slowing. 👇 pic.twitter.com/8bW3xB15UH

— Arkham (@ArkhamIntel) June 2, 2023

Celsius allocated 46% of the 428,000 ETH to each wallet, with the remaining 8%, equivalent to $60 million, remaining in the Unstaking wallet.

Blockchain data reveals that the Staked ETH wallet was used for staking through Figment, while the ETH2 Deposit wallet is dedicated to the company’s staking pool.

Celsius deposited $374 million into Figment and sent $371 million to its Beacon Deposit Contract. The company currently holds around 57,000 ETH, valued at $108 million.
As a result of Celsius’ significant deposits, the queue to add new validators on Ethereum has become more congested. According to Wenmerge, there are currently 92,761 validators in line, and it will take approximately 45 days and 17 hours to clear the queue.

This congestion is not surprising, given the faster deposit pace than withdrawals since the Shanghai upgrade. Token Unlocks data reveals that 6 million ETH has been deposited since the upgrade, with a net staking balance of 3.03 million ETH at present.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.