Ethereum Foundation unstakes $50 million in ETH, market remains stable

Ethereum Foundation sparked fresh discussions across the crypto market after unstaking more than $49 million worth of Ethereum (ETH) on May 11. Blockchain data from Arkham Intelligence revealed that the organization withdrew 21,271 ETH from its staking positions through Lido, one of the largest Ethereum staking platforms. The transactions were completed in multiple batches, with each transfer carrying an estimated value of around $2.3 million. On-chain records showed that every batch contained roughly 811 wrapped staked ETH (wstETH), which was then deposited into Lido's unstETH contract as part of the withdrawal process. Following the move, the Ethereum Foundation's ETH holdings reportedly dropped from close to its internal limit of 70,000 ETH to approximately 52,965 ETH. Nearly $50 million in ETH was also returned to the foundation's liquid treasury wallet, leading some investors to speculate about a possible selloff. Despite the concerns, analysts noted that the transfers appear to be linked to treasury management rather than immediate market liquidation. According to Arkham Intelligence, the Ethereum Foundation may simply be rebalancing its funds to maintain liquidity for ecosystem development, operational expenses, and grant distributions. Under Lido's withdrawal mechanism, unstaked assets are first converted from wstETH into ETH after the platform's unlock period is completed. This means the funds are not instantly available for trading or selling. The Ethereum Foundation conducted a similar unstaking event in April, withdrawing nearly the same amount of ETH. At that time, the market also feared increased selling pressure, but no major dump followed. Meanwhile, Ethereum price showed little reaction to the latest activity and continued trading near the $2,300 level.