Why Did the Ethereum Foundation Suddenly Unstake 17K ETH Just Before Hitting 70K ETH Milestone?
So, here’s a curious twist in the Ethereum saga that’s got me scratching my head a bit: the Ethereum Foundation has just peeled back part of its staking curtain after inching close to its lofty 70,000 ETH goal. On a recent Saturday, they unstaked a hefty 17,035 ETH — a move valued near $40 million, according to some slick Arkham detective work. Now, why would they do that right after nearly hitting their target? Are they warming up to offload some ETH, or is this just a strategic shuffle behind the scenes? In the ever-evolving dance of staking and unstaking — where ETH gets locked up securing the network only to be queued before it’s released again — the Foundation’s dance move raises some fascinating questions about their long game and the delicate balance of governance they must juggle. Stakes are high, literally, and the plot thickens as big players eye the board… Want to dive deeper into the unfolding drama? LEARN MORE.
The Ethereum Foundation has moved to unwind part of its staking position shortly after nearing its stated goal of 70,000 staked ETH.
On Saturday, the Ethereum Foundation unstaked 17,035.326 ETH, worth roughly $40 million, according to Arkham data. The move involved depositing wrapped staked ETH (wstETH) into Lido’s unstETH contract, with ETH expected to be returned once the withdrawal queue completes.
In Ethereum, unstaking is the process of withdrawing ETH that was previously locked to help secure the network through validators. When ETH is staked, it’s deposited into the Ethereum Beacon Chain, where it remains locked while earning rewards. To unstake, a withdrawal request is initiated, and the funds enter a queue period after which the funds are released.
The Ethereum Foundation has not yet revealed why it unstaked 17,000 ETH, prompting some users to speculate it could be preparing to sell. “The biggest seller of ETH continues to be the people who created ETH,” one user wrote.
Related: Another DeFi protocol hacked as Sui-based Volo hit by $3.5M exploit
Ethereum Foundation nears 70K staked ETH goal
The EF started staking ETH after updating its policy in June 2025. At the time, the foundation said that staking and decentralized finance participation would help fund protocol research, development and ecosystem grants.
Since February, the foundation has steadily expanded its position, staking 2,016 ETH initially, followed by 22,517 ETH in March. Earlier this month, the foundation staked more than 45,000 ETH in a series of transactions, bringing the total to around 69,500 ETH, just shy of its internal 70,000 ETH staking target.
However, concerns remain over governance risks. Ethereum co-founder Vitalik Buterin has cautioned that large-scale staking by the foundation could complicate neutrality during potential contentious hard forks, where competing chains may emerge.
Related: Ethereum Risks 10% Dip Versus Bitcoin Despite ETH Staking Milestone
DeFi protocols unite to back rsETH
As Cointelegraph reported, decentralized finance protocols have joined forces to stabilize rsETH after a $293 million exploit on the Kelp restaking platform triggered market disruption. The incident involved hackers stealing over 116,000 restaked ETH tokens and using them as collateral to borrow funds, leaving roughly $195 million in bad debt on Aave and straining the broader DeFi lending market.
Backers have pledged over 43,500 ETH (around $101 million) in a coordinated “DeFi United” effort led by Aave, with participation from Lido DAO, Golem Foundation and major contributions from EtherFi Foundation and Mantle.
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