Prices for ether (ETH) should rise in the upcoming weeks as a result of the announcement by cryptocurrency lender Celsius, which is reorganising under bankruptcy procedures, that it will unstake its holdings of the second-largest cryptocurrency. This move will eliminate a potential contributing reason to the token’s poor performance in recent months.
The business has previously stated that it will incorporate staking into its operations. It is currently changing to become a bitcoin miner. To pay for the expenditures related to the reorganisation plan, the company has been offering staking rewards for sale on the open market.
“Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process,” the company stated in a post on X. “The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors.”
Together with other elements like interest in alternative blockchains, the staking benefits might not have significantly increased ether sales, but they might have added to the unfavourable perception of the coin.
Crypto wallets associated with Celsius have staked over $151 million worth of ether, according to data from analysis tool Arkham. This position is projected to generate approximately 4%–5% in annualised yields.
Even though the staking benefits might not have resulted in a significant increase in ether sales, they might have added to the bad perception of the currency in addition to other elements like interest in other blockchains.
A portion of the 30,000 ETH that Celsius delivered to custodian Fireblocks last week was deposited to cryptocurrency exchange Coinbase, where it was probably swapped for stablecoins, according to outflow statistics.