Ethereum Foundation Unstakes 17,035 ETH via Lido
The Ethereum Foundation unstaked 17,035.326 ETH by depositing wstETH into Lido’s unstETH contract, initiating a withdrawal after nearing its 70,000 ETH staking target.
On Saturday the Ethereum Foundation deposited 17,035.326 wrapped staked ETH (wstETH) into Lido’s unstETH contract, initiating a withdrawal request that will convert the position back to native ETH once network withdrawal conditions allow. Chain analytics data values the unstaked amount at roughly $40 million.
When ETH is staked on the Beacon Chain it remains locked while earning rewards. Depositing wstETH into an unstETH contract turns a staked derivative into a withdrawal request that enters a queue. The ETH will be returned only after the protocol’s withdrawal queue and validator exit rates permit releases.
The foundation has not given a reason for the partial unwind. One user wrote online, “The biggest seller of ETH continues to be the people who created ETH.” The foundation has not commented on the transaction.
The unstaking comes after the foundation updated its staking policy in June 2025 and built its position in stages. The foundation staked 2,016 ETH in February, 22,517 ETH in March, and more than 45,000 ETH in a series of transactions earlier this month, bringing the total to about 69,500 ETH before the recent withdrawal.
Ethereum co-founder Vitalik Buterin has warned that large holdings by a single organization could complicate the foundation’s neutrality in the event of a contentious hard fork that produces competing chains.
The activity follows a major incident in the restaking ecosystem in which attackers took more than 116,000 restaked ETH tokens, creating roughly $195 million in bad debt on a lending platform. In response, several decentralized finance groups coordinated a stabilization effort and pledged over 43,500 ETH in backing, with participation from major protocol and foundation stakeholders.
Lido issues staked ETH derivatives such as wstETH that represent claims on validator rewards. The unstETH contract manages requests to convert those derivatives back into native ETH. Because withdrawals depend on on-chain rules and validator exit rates, the foundation’s requested ETH will be released only after those conditions are met.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
