Lido’s Withdrawal Queue Grows with 428K stETH Deposited by Celsius

Lido's Withdrawal Queue Grows with 428K stETH Deposited by Celsius

Introduction

Bankrupt crypto lending firm Celsius is anxious to get its staked Ether (ETH) stash back from liquid staking platform Lido, which enabled withdrawals this week.

Withdrawal Request Details

Celsius initiated the process of withdrawing its Lido Staked ETH (stETH) from the protocol. According to transaction data, it has requested the withdrawal of 428,084 stETH in batches of 1,000.

Value and Burning of stETH

The stash is valued at approximately $784.7 million at current prices. The move follows a transaction of a similar amount of stETH on May 15 in preparation for withdrawal.

Once the withdrawal process is complete, Celsius will receive the equivalent in Ether, and the stETH tokens will be burnt by Lido.

Withdrawal Queue Statistics

According to Dune Analytics, the cumulative amount of stETH in the withdrawal queue is 442,000 from 141 requests. It is valued at around $808 million, though Celsius is responsible for the majority of it. The total amount already processed is 629 ETH, according to Dune.

Potential Impact on Withdrawal Queue

However, larger numbers of Ether withdrawal requests from Lido will have an impact on the network withdrawal queue — which is a dynamic process. Lido is the largest staking provider, with a market share of almost 30%, so Celsius could be in for a long wait to get its ETH back if requests increase.

Tom Wan, a research analyst at 21Share, suggested that if unstaking requests exceeded 10%, it could cause a larger number of validator exits. This would potentially lead to longer queues for withdrawals.

Utilization of Capital

The capital may be used as part of Celsius restructuring efforts or to partly repay some of its $4.7 billion debts to creditors.

Previous Transaction

In late February, the crypto lender converted 22,962 wrapped Bitcoin (WBTC) into Bitcoin (BTC) in a transaction valued at approximately $540 million at the time.