Just four days after Ethereum’s landmark Shapella upgrade enabled staked ETH withdrawals for the first time, the network has already processed over 1 million ETH in withdrawals — and yet, the price of Ether has surged roughly 12% since the upgrade went live on April 12. The data tells a far more nuanced story than many expected.
TL;DR
- Over 1.04 million ETH has been withdrawn from 491,037 processed withdrawal requests since Shapella
- Despite massive withdrawals, ETH price climbed to $2,076 — an 11-month high
- Net staked ETH declined only 3.8% to 17.3 million as new deposits offset much of the outflow
- Lido DAO accounts for 25% of all withdrawals; centralized exchanges dominate pending requests
- ETH staking volume surpassed withdrawal volume for the first time on April 17
A Historic Milestone for Ethereum Staking
When the Shapella (Shanghai + Capella) upgrade activated on April 12, 2023, it marked the completion of Ethereum’s transition to proof-of-stake. For the first time since the Beacon Chain launched in December 2020, validators could withdraw their staked ETH. Many analysts feared a massive sell-off. Instead, what followed was a remarkable display of confidence in the network.
According to beaconcha.in data, 1.04 million ETH had been withdrawn as of April 17, processed through 491,037 individual withdrawal requests. The single largest day of withdrawals came on April 15, when 392,801 ETH exited the Beacon Chain. On every other day since the upgrade, more than 150,000 ETH was withdrawn daily.
Withdrawals Yes, But New Deposits Pour In
Here’s where the narrative gets interesting. Despite the headline-grabbing withdrawal figures, investors have simultaneously deposited 380,420 ETH back into staking since the upgrade. The result? A net decline of just 657,570 ETH — roughly $1.36 billion at current prices — representing a modest 3.8% drop in total staked ETH, which still stands at 17.3 million.
By April 17, the trend had already reversed. According to on-chain data, ETH staking volume of 124,000 ETH actually exceeded the withdrawal volume of 64,800 ETH for the first time since Shapella went live. In the last 24 hours alone, new deposits were outpacing withdrawals — a clear signal that the initial “unstake and sell” fears were largely unfounded.
Who’s Withdrawing and Why
Lido DAO, the largest liquid staking platform, leads all withdrawal sources with approximately 25% of processed withdrawals, according to Nansen’s dashboard. Binance follows with 84,145 staked ETH withdrawn, accounting for 8.11% of the total. Other notable withdrawers include bankrupt lender Celsius, Figment, and Satofishi.
Centralized exchanges — Kraken, Coinbase, Binance, and Gemini — dominate the pending withdrawal queue. These platforms collectively represent 78% of entities awaiting withdrawals, with 736,500 ETH still in the queue as of April 17. The reasons are partly structural and partly regulatory: the SEC’s crackdown on staking-as-a-service has forced US-based exchanges to unwind their staking programs to remain compliant with securities regulations.
Looking Ahead: 866,850 ETH Still in Queue
According to Token Unlocks data, 866,850 ETH — valued at approximately $1.81 billion — remains in the withdrawal queue from 471,370 validators. While this represents a significant amount, the fact that ETH has continued to climb suggests the market has already priced in these outflows. With 579,000 active validators and roughly 18.5 million ETH staked (about 15% of the total supply), Ethereum’s proof-of-stake consensus layer remains robust and well-capitalized.
Why This Matters
The Shapella upgrade was always going to be a stress test for Ethereum’s staking economics. The fact that withdrawals crossed 1 million ETH while the price simultaneously hit an 11-month high is a powerful validation of the network’s design. New depositors are entering the staking market faster than the initial wave of withdrawals suggested they would. The narrative has shifted from “will there be a mass sell-off?” to “Ethereum staking is working exactly as intended.” For altcoin investors, the successful execution of Shapella — and the market’s bullish response — reinforces Ethereum’s position as the dominant smart contract platform and a legitimate yield-generating asset.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
everyone screamed sell pressure and instead eth pumped 12%. 3.8% net decline in staked eth is basically nothing
the new deposits offsetting withdrawals is the real story here. people were literally lining up to stake while others withdrew
1 million ETH withdrawn and price still went up 12%. anyone who shorted the unlock got absolutely wrecked
short_squeeze_ nailed it. everyone and their mother was shorting the unlock. funding rates were negative for weeks beforehand
shorting the Shapella unlock was the most crowded trade of 2023. when everyone piles onto the same side the unwind gets violent
when everyone piles onto the same short trade the only question is when the squeeze starts. 1M ETH withdrawn and price went up, classic
3.8% net decline is noise. the market priced in a 15% dump and got absolutely nothing. textbook sentiment trap
staking volume surpassing withdrawals by april 17 is the stat nobody talks about. everyone expected a mass exodus and instead people lined up to stake more
net staked only dropped 3.8% post withdrawal. the sell pressure fear was the most overblown narrative of 2023
3.8% decline offset by new deposits within a week. the market literally voted with its money and the fear mongers lost
lido accounting for 25% of withdrawals makes sense, they had the most locked up. wonder how their token holders felt that week
lido at 25% of all withdrawals makes sense given their market share. wonder how the lido dao token performed relative to eth during this period
Ingrid B. lido token actually pumped during the unlock window. stETH discount narrowed from like 6% to under 1% in days
491037 withdrawal requests processed in 4 days is actually insane throughput for a network people said would bottleneck. eth infrastructure passed a real stress test
the 3.8% net decline number is doing a lot of heavy lifting. new deposits masked the outflow which means the headline sounds calm but there was real selling happening underneath
491,037 processed withdrawal requests in 4 days and ETH went UP 12%. every analyst who predicted a dump owes their readers an apology