Easing ETH Selling Pressure: Celsius to Unstake Thousands of Ether

• Celsius Unstakes ETH Holdings: Potential Boost for Ether Prices
• Staking Rewards to Cover Reorganization Costs
• Unstaking Activity: Timely Distributions to Creditors
• Staking Rewards Impact on ETH Sales
• Celsius' ETH Outflow to Fireblocks Custodian

Celsius Unstakes ETH Holdings: Potential Boost for Ether Prices

The restructuring crypto lender, Celsius, has announced its intention to unstake its extensive holdings of Ether (ETH), potentially causing an upward shift in ETH prices over the upcoming weeks. The company's substantial holdings of the world's second-largest cryptocurrency may have negatively impacted its market performance of late. Celsius, transitioning towards bitcoin mining, previously included staking in its activities.

Staking Rewards to Cover Reorganization Costs

As part of its restructuring, Celsius has been selling its staking rewards on the open market to cover costs. The decision to unstake existing ETH holdings aims to balance out certain costs incurred throughout the restructuring process.

Unstaking Activity: Timely Distributions to Creditors

The company stated that the extensive unstaking occurring over the next few days will unlock ETH and ensure the timely distribution to creditors. Data from the analysis tool Arkham reveal that crypto wallets linked to Celsius have staked Ether exceeding $151 million. This position likely garners annualized yields of between 4%-5%.

Staking Rewards Impact on ETH Sales

Although the staking rewards may not induce a large volume of Ether sales, they could have fostered negative sentiment for the token. Other factors like interest in other blockchains may have also affected the token's sentiment.

Celsius' ETH Outflow to Fireblocks Custodian

According to outflow data, Celsius transferred over 30,000 ETH to custodian Fireblocks in the past week. Some of these funds were deposited in the cryptocurrency exchange Coinbase, where they were likely traded for stablecoins. Over the last week, Ether worth millions has been transferred to custodians and exchanges.

Edited by Jonathan Stoker