ARKHAM reported that, Celsius Network, is taking a significant step by staking all of its current Ethereum (ETH) holdings. In the last 24 hours alone, the company has staked more than $600 million worth of ETH, and the rate of deposits shows no signs of slowing down.
When Lido, a popular protocol, allowed withdrawals in mid-May, Celsius’s address stood out as the largest withdrawer. During that period, they withdrew a staggering amount of over 400,000 ETH, equivalent to $800 million. This ETH was held in Celsius’s “Unstaking” wallet for two weeks, indicating their intention to stake the funds with Figment, an institutional provider.
About 24 hours ago, Celsius moved the ETH from the unstaking wallet into two separate deposit wallets. One of these wallets is labeled as “Celsius’s ETH2 Deposit wallet,” while the other is referred to as the “Staked ETH” wallet, which deposits the funds with Figment.
Over the past 24 hours, Celsius’s staking wallet has received over $400 million worth of ETH, with deposits being made every few minutes. Simultaneously, the wallet provided by Figment has seen inflows of over $215 million.
To date, Celsius has deposited over $600 million worth of ETH. However, they still hold approximately $150 million of ETH in their Celsius Staking wallet, and around $60 million of ETH remains in the wallet used for unstaking from Lido. In total, Celsius still possesses nearly $400 million worth of ETH.
If Celsius were to stake the remaining ETH, the total amount staked would exceed $1 billion. This influx of funds into the Beacon Chain would significantly benefit the Ethereum network, particularly as it undergoes a transition to a proof-of-stake consensus mechanism.
By choosing Figment as their institutional provider for staking, Celsius can avoid the 0.5% annual fees that would have been incurred if they continued using Lido’s staking service. While this may seem like a small percentage, considering $1 billion worth of staked ETH, it translates to savings of $5 million per year.