• After the Shapella upgrade, which enabled validators to withdraw their staked Ether (ETH) from the Beacon Chain after three years, most validators are choosing to restake their unlocked Ether, contributing to an increase in staked ETH volume.
• As of April 17, the ETH staking volume of 124,000 ETH exceeded the withdrawal volume of 64,800 ETH for the first time since the Shapella upgrade, and in the last 24 hours, the amount of staked ETH was 94,968 against 27,076 in withdrawals.
• One of the reasons for the decrease in withdrawals could be attributed to the current price of ETH, and while some early withdrawals were staking rewards, the majority of validators are restaking their unlocked Ether, which has contributed to an increase in staked ETH volume.

On April 12, the Ethereum blockchain underwent a significant Shapella upgrade that allowed validators to withdraw their staked Ether (ETH) from the Beacon Chain after three years. While this opened up the possibility of mass selling, the latest data shows that most validators are choosing to restake their unlocked Ether instead. According to Nansen, the ETH staking volume of 124,000 ETH exceeded the withdrawal volume of 64,800 ETH for the first time since the upgrade. In the last 24 hours, the amount of staked ETH was 94,968 against 27,076 in withdrawals. The first round of withdrawals consisted primarily of partial withdrawals from Lido and old validators, and it takes approximately three days to get into the withdrawal queue.

The Shapella upgrade was a critical moment for the Ethereum blockchain, with millions of unlocked ETH posing a risk of mass selling. However, the majority of validators are actively choosing to remain invested in the platform by restaking their unlocked Ether. While some validators, like Kraken, had to exit to comply with a United States Securities and Exchange Commission ruling, the majority of early withdrawals were staking rewards. Out of the 1 million withdrawn ETH, three addresses restaked a total of 19,844 ETH, and three addresses transferred ETH to centralized exchanges (CEXs) after withdrawal, with 71,444 ETH sent to different exchanges.

One of the reasons for the decrease in withdrawals could be attributed to the current price of ETH. The average price of staked ETH is about $2,137, which suggests that validators are choosing to hold their assets rather than selling them at current prices. Additionally, Crypto exchange Binance is set to open withdrawals on April 19, which could lead to further changes in staked and withdrawal volumes.

As of now, 22,231 validators have signed up for a complete exit out of 574,624, while 910,930 ETH of the 18.6 million staked ETH is slated to be withdrawn. However, the situation is continually evolving, and it will be interesting to see how the balance between staked and withdrawn ETH evolves over time. In conclusion, the Shapella upgrade has been a success for the Ethereum blockchain, with the majority of validators choosing to remain invested in the platform.

Table 1: ETH Staking and Withdrawal Volume

Table 2: ETH Withdrawal Destination