Key Points:

  • Celsius is making headlines with its move to stake nearly $1 billion of cryptocurrencies in staking Ethereum (ETH).

  • The transfer extended the already long queue for setting up new validators on the Ethereum network to 44 days and 11 hours.

  • So far, the bankrupt lending platform has deposited over $600 million in ETH – but they still need to be done.

According to blockchain intelligence firm Arkham, in the last 24 hours alone, Celsius has staked over $600 million worth of ETH with no signs of slowing down. This represents a large on-chain flow, and the deposit rate continues to increase.

In total, Celsius still holds nearly $400 million in ETH. If they stake the rest, this would represent over $1 billion in net inflows to Beacon Chain.

So far, Celsius have deposited over $600M of ETH – but they're not done yet.Their Celsius Staking wallet still holds over $150M of ETH, and they have additionally left around $60M of ETH in the wallet they used to unstake from Lido. pic.twitter.com/YbSFRGIpbO

— Arkham (@ArkhamIntel) June 2, 2023

Right at the time it was allowed to withdraw staking ETH, Celsius held about 460,000 ETH – now worth $870 million – staking with liquidity staking platform Lido Finance and around 160,000 tokens – around $300 million la at current prices – implemented in its staking pool. They kept this ETH in the ‘Unstaking’ wallet for two weeks, instead declaring their intention to stake with institutional provider Figment.

About 24 hours ago, Celsius split the ETH from the unsecured wallet into two separate deposit wallets. One wallet is marked as a Celsius ETH2 deposit wallet, while the other is labeled “ETH deposited” and deposited in Figment. Celsius’s staking wallet has seen over $400 million worth of ETH inflows in the past 24 hours, with ongoing deposits being made every few minutes.

Tom Wan, the analyst at 21Shares crypto investment product manager, noted that the transfer extended the already long queue for setting up new validators on the Ethereum network to 44 days and 11 hours, with Celsius potentially causing almost an extra week.

Source: Wenmerge

Wan predicted that if Celsius commits to staking all 428,000 tokens, it will add six days and 15 hours to the waiting period, increasing to 45 days.

If Celsius decided to stake all the 428k $ETH, it would take 45 days and 4 Hours to clear the whole activation queue. Essentially adding 6 Days & 15 hours to the queueThanks @JimmyRagosa for flagging! pic.twitter.com/gbvvu9YSU6

— Tom Wan (@tomwanhh) June 1, 2023

The transfer happened as the company restructured after filing for bankruptcy protection in July 2022 when it succumbed to liquidity problems caused by plummeting cryptocurrency prices and a wave of withdrawals. Use. Last week, the US bankruptcy court auctioned off the lender to the winning bidder Fahrenheit, an Arrington Capital-backed investment group that will take over the company’s assets, including its institutional loan portfolio institutions, staking cryptocurrencies, and cryptocurrency mining units.

Staking allows lenders to earn rewards for holding digital assets while a withdrawal freeze on user deposits is in effect. However, it also significantly strains the already crowded queues for adding new validators on the Ethereum network.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News