The Ethereum Foundation has withdrawn 17,035.326 ETH—valued at roughly $40 million—after nearing its internal staking goal of 70,000 ETH.
Summary
The Ethereum Foundation unstaked 17,035 ETH (~$40M) after approaching its 70,000 ETH staking target.
The funds were moved as wstETH into Lido DAO’s unstETH contract and will be released once the withdrawal queue is processed.
The move sparked speculation about a potential sale, though no official explanation has been provided.
Blockchain data from Arkham shows the transaction occurred on Saturday, with the foundation depositing wrapped staked ETH into Lido’s unstaking contract. The ETH will become accessible only after completing the standard withdrawal queue under Ethereum’s unstaking process.
The foundation began actively staking ETH after revising its treasury strategy in June 2025, aiming to fund research, development, and ecosystem grants through staking yields and DeFi participation.
Since February, its staking activity has accelerated significantly—rising from just over 2,000 ETH to nearly 69,500 ETH after multiple large deposits in March and April, bringing it close to its 70,000 ETH objective before this latest unstake.
Market reaction and uncertainty
The absence of a clear explanation has led to market speculation. Some observers questioned whether the unstaked ETH could eventually be transferred to exchanges or sold, though there is no confirmation of such plans.
In the Ethereum network, staking involves locking ETH to support validators and secure the chain, while unstaking initiates a withdrawal request that is processed over time before funds are released.
Broader context
The move also comes amid ongoing recovery efforts in the DeFi sector following the rsETH exploit tied to Kelp restaking. Protocols including Aave, Lido DAO, and the Golem Foundation have collectively pledged over 43,500 ETH to stabilize affected markets.
Meanwhile, Vitalik Buterin has previously cautioned that large-scale staking by foundations could introduce governance risks, particularly during contentious network upgrades.
The unstaking appears to follow the foundation nearing its staking target rather than signaling a confirmed sell-off—but without an official statement, the intent behind the move remains open to interpretation.
