Recently, there has been a particularly high number of ETH staking withdrawals. Since mid-July, the amount of ETH waiting to be withdrawn has increased from less than 2,000 to over 670,000, worth about 3.1 billion USD. Now, those who want to withdraw have to wait 12 days, which is much longer than before.

Why are so many people withdrawing?

Low Returns: Currently, staking ETH earns less than 3% per year, and after deducting various costs, it becomes even less attractive, making it less appealing than other new investment methods. Those who staked ETH at a low price early on, now facing high prices and low returns, are thinking about selling to make a profit.

Borrowing to Invest in Stocks is Not Worth It: Some people borrowed money to invest after staking ETH, but now the interest rates on loans have increased. Previously, borrowing 100 units would require repayment of 2-3 units after a year, but now sometimes it requires repayment of 18 units. The earnings are not enough to cover the interest, so they can only withdraw.

Opportunities for Profit from Price Differences: A token similar to ETH (stETH) has recently dropped in price. Some people bought it at a low price and then exchanged it for ETH to profit from the price difference, which has also led to more withdrawals.

Policy Impact: The U.S. has stated that staking is no longer illegal, and new investment products may emerge. Some people are withdrawing now to wait for new opportunities.

There is also good news in the market.

Although many are withdrawing, there are still quite a few people looking to stake. Currently, there are over 100,000 ETH waiting to be staked.

Withdrawn ETH does not necessarily have to be sold immediately; it may be reinvested in another way. Additionally, the system limits the amount that can be withdrawn each day, preventing a sudden influx into the market.

What should we pay attention to?

If there continues to be such a high number of withdrawals, and if they all sell, it could cause the price of ETH to drop slightly. Moreover, platforms that rely on earning from staking ETH may also be affected, so it is important to keep an eye on their situation.

In summary, everyone is currently adjusting their investments based on returns and costs. If you want to understand more, just keep an eye on subsequent changes.