Celsius Initiates Massive Ether Unstaking, Potentially Alleviating Selling Pressure on ETH
![](/media/articles/1704450544.jpg)
In recent developments, Celsius, a crypto lender currently navigating bankruptcy proceedings and restructuring, has undertaken substantial transactions involving Ethereum (ETH). Within the past week, Celsius, now considered defunct, moved more than 30,000 ETH to the custody platform Fireblocks. A portion of these assets found their way onto the cryptocurrency exchange Coinbase.
The cryptocurrency market, particularly Ether (ETH), may be poised for positive momentum in the upcoming weeks, following Celsius's announcement of its intent to unstake its significant holdings in the second-largest digital currency. This strategic move is anticipated to eliminate a contributing factor to ETH's recent underperformance.
Celsius, in the midst of a transformation into a bitcoin mining entity, had initially integrated staking into its operational framework. To cover the financial requirements associated with its restructuring plan, the company resorted to selling staking rewards on the open market. The decision to unstake existing ETH holdings is a calculated move designed to offset specific costs incurred during the restructuring process.
Celsius communicated its strategy through a recent post, stating,
"The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors."
This move aims to utilize the valuable staking rewards income derived from the ETH holdings for the benefit of the estate.
Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process
— Celsius (@CelsiusNetwork) January 4, 2024
Analysis tool Arkham reports that crypto wallets linked to Celsius have staked over $151 million worth of Ether, generating an estimated annualized yield of 4%-5%. While the impact of staking rewards on ether sales may not be substantial, they likely played a role in the negative sentiment surrounding the token, exacerbated by factors like the increasing interest in alternative blockchains.
Concurrently, outflow data highlights Celsius's transfer of over 30,000 ETH to the custodian Fireblocks in the past week. Some of these funds were subsequently deposited onto the crypto exchange Coinbase, where they may have been exchanged for stablecoins, introducing an additional layer of complexity to the ongoing dynamics of the market.
Ether in Motion: Recent Weeks Witness Millions in Value Transferred to Custodians and Exchanges, Insights from Arkham
Read More: Ether Transaction: Crypto Wallet Connected to Donald Trump Transfers $2.4M to Coinbase
Trending
![](/media/articles/thumb/1713207994.jpg)
![](/media/articles/thumb/1713207052.jpg)
Press Releases
Deep Dives
![](/media/articles/thumb/1713202119.jpg)
![](/media/articles/thumb/1702819494.jpg)
![](/media/articles/thumb/1702815162.jpg)