#BitcoinETFOptionLimitQuadruples


Insider Kelp DAO Picu Wave of Unstaking 433.158 ETH on Ethereum DeFi Protocol

Panic has swept the restaking ecosystem following a protocol hack of the Kelp DAO bridge worth $292 million by a hacking group allegedly linked to Lazarus. As a result, the Ethereum validator withdrawal queue surged sharply to 433.158 ETH on Sunday (5/3). This phenomenon accelerated the outflow of funds from rsETH assets and caused the total value locked (TVL) across various DeFi protocols to plummet by up to 30% over the past 12 weeks.
​This withdrawal queue spike is extremely drastic, recorded to have increased by up to 72,000% in just the last two weeks, with withdrawal wait times now swelling to seven days. On-chain analysts say that asset holders are beginning to assess that the risk of losing capital due to the hack is far greater than the returns offered by current restaking protocols.
​Despite the massive unstaking flow, the Ethereum network still shows resilience. The queue for new staking remains at 3.6 million ETH, or about seven times the size of the withdrawal queue. Currently, 31.7% of the total Ether supply remains locked within the network, which is expected to act as a buffer against selling pressure to prevent the price from falling below the critical support level of $2,241.
ETH-0.63%
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin