#ETH Trading Volume Surges# Users are unstaking their ETH in an unusual amount on Ethereum! What does it mean and why? Cathie Wood commented.

Famous CEO Cathie Wood, the unstaking transactions that have recently occurred on the Ethereum network,
commented on the reason.
There has been a record increase in the unstaking of staked assets on the Ethereum network recently.

According to ARK Invest CEO Cathie Wood, this sudden unstaking demand may be due to a 2% cryptocurrency transfer reward offered by an exchange.
Wood, while answering questions about the "sudden increase in Ethereum unstaking requests" within the community, stated, "Borsq offers a 2% matched reward for crypto transfers. Therefore, venture capitalists and other investors are transferring their staked ETH, which has reached the end of its lock-up period, to companies known as digital asset treasures (DAT) in order to boost their funds." Wood also added that these companies are acting similarly to MicroStrategy (MSTR) and Bitmine (BMNR), and that broker advisors are offering BTC and ETH investments to their clients through such stocks.

The massive unstaking move made by validators and long-term investors on the Ethereum network has surpassed the outflow wave caused by Celsius in January 2024. According to on-chain data, approximately 693,000 ETH, worth about 2.6 billion dollars, is currently waiting to be withdrawn. This has been recorded as the largest unstaking wave seen since the implementation of Ethereum's staking mechanism.
Due to the high volume of withdrawal requests, the withdrawal queue time has extended to up to 12 days. However, the amount of ETH waiting to be staked remains at only 296,000 ETH; this indicates that the demand for re-staking is quite low.
According to the staking service provider Everstake, validators perform unstaking operations not only for sales but also in line with strategies such as restaking and yield optimization. ARK Invest CEO Wood stated that some of these unstaking operations are related to institutional investors reallocating their staked ETH to digital asset treasury firms like SharpLink Gaming and Bitmine Technologies.
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