ETH Stakers are Withdrawing Rewards, Not Principal

Principal Accounts for Less than 5% of Withdrawals a Day After Shapella

Highlights

Stakers have largely withdrawn rewards accrued from their staking, rather than their principal.
More than 95% of withdrawals were staking rewards, according to TokenUnlocks.
The remaining 5% was users’ original stake, meaning those users had exited staking entirely.
There are limits on the amount of Ether that can be withdrawn each day, and users and entities that would like to withdraw their principal have been placed in a queue.
On the day after the upgrade, Ether topped $2,000 for the first time since May 2022, just before the collapse of DeFi protocol Terra.
Experts believe the benefit of enabling withdrawals outweigh any sell pressure it might cause in the long-term.

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