Kraken to Unstake Over $1 Billion in ETH After Shapella Upgrade – What Happens Next?
Major crypto exchange Kraken has taken a leading position in the Ethereum (ETH) unstaking queue following the blockchain’s latest Shapella upgrade, with a number of market observers suggesting that the exchange’s dominance of the queue could be triggered by Kraken's recent legal woes.
The Shanghai (Shapella) upgrade is considered a major milestone in Ethereum's roadmap, as it comprises modifications made to the blockchain’s execution layer (Shanghai upgrade), consensus layer (Capella upgrade), as well as the Engine API. Owing to this, the upgrade allows ETH stakers to withdraw their staked crypto and also any accrued staking rewards.
As of 09:00 a.m. UTC, Kraken was responsible for about 63.2% of the ETH that was waiting for withdrawal. The exchange held a significantly higher share of the total withdrawable ETH than its major competitors, with Coinbase accounting for a stake of 10.8%, and Huobi holding a share of 5.1%, according to data released by blockchain analytics platform Nansen.
Close to ETH 869,000 worth more than $1.8 billion was awaiting withdrawal at that time, bringing Kraken’s share of the crypto north of $1 billion.
It is noteworthy that Kraken’s legal woes and its row with the U.S. regulator, the Securities and Exchange Commission (SEC), were likely to play a role in the latest development.
Last February, the American exchange reached an agreement with the agency under which Kraken agreed to stop offering staking services or programs to customers based in the U.S. The SEC has accused the platform of failing “to register the offer and sale of their cryptoasset staking-as-a-service program” which the regulator treats as securities. As part of its deal with the agency, Kraken also agreed to pay some $30
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