Binance announced on Thursday that users who mortgage ETH through the exchange will be able to exchange their BETH at a ratio of 1:1 starting at 08:00 UTC on the 19th (that is, 15:00:00 pm on the same day). Vietnam time).
The announcement comes hours after ethereum successfully implemented its highly anticipated Shapella hard fork, also known as the Shanghai upgrade, which allowed the withdrawal of more than 18 million ETH from the blockchain since late 2020.
Binance said users’ withdrawal requests cannot be canceled once submitted, and the initial process can be slow, taking 15 days to several weeks to complete. Users will receive redeemed ETH in their spot wallets, while pending BETH tokens locked in pending ETH withdrawal requests will not be eligible for staking rewards. BETH is a Sweap Token issued by Binance, which is pegged to ETH on the Ethereum blockchain 1:1.
“The estimated distribution date of the converted ETH will be displayed before the user confirms his withdrawal request. Users can refer to the latest ETH distribution date: Pledge HistoryBinance said.
The exchange added that, given the processing limitations of the Ethereum network, each user will have a daily conversion quote, which is subject to change.
Kraken Leads ETH Destaking Queue
On-chain data tracked by Rated.Network shows that of all validators switching to unstaking, Kraken leads with a 62% wait rate. According to Parsec Finance, the number of validators in the unstaked queue topped 15,000 at press time.
Kraken’s dominance in the unstake queue appears to have been predicted as it faces regulatory issues with the US Securities and Exchange Commission (SEC).
In February, the SEC identified Kraken’s staking service (but not other staking programs) as an unregistered security.
“The complaint alleges that Kraken advertised that its investment staking program provided an easy-to-use platform and that proceeds arose from Kraken’s efforts on behalf of investors, including through events promoting Kraken’s regular returns and investment payment strategy,” the SEC said in a statement. Press release for February.
Kraken eventually settled with the SEC with a $30 million fine.
The impact of unstaking on Ethereum
Overall, the Shanghai upgrade appears to have had little impact on the Ethereum protocol and ETH tokens. According to Nansen.ai, on-chain data shows very little ETH being withdrawn, with only a -0.25% change in ETH staked.
Source: Nansen Ai
In March, CryptoQuant noted that 60% of all collateralized ether was at a loss, and said selling pressure on ether would be low following the Shanghai upgrade.
Nansen’s Andrew Thurman noted on Twitter that “most withdrawals are to their rewards withdrawal address, not all withdrawals of staked ETH with rewards”.
Recent data from Nansen shows that the average price of ETH staked on Lido is $2,552. Lido accounts for about 31% of all Ether deposits.
Source: Nansen Ai
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