Ethereum Foundation has decided to decrease some of its staking positions at a time when it is just reaching the self-imposed target of holding 70,000 staked Ether tokens.
According to blockchain data from Arkham, the foundation unstaked 17,035 ETH, worth roughly $40 million, last Saturday. The process of unstaking was done by converting the wrapped staked ETH to a withdrawal request via Lido; the ETH will get unlocked once the queue is cleared.
In simple terms, staking is essentially locking down the Ethereum to assist in transaction validation and generate profits. Whenever there is an attempt to unstake, one has to put forward a request and be queued up before accessing the funds.
The reason for unstaking by the Ethereum Foundation of 17,000 ETH is not known at the moment, but some users suggest that it may be about to put these ETH up for sale. “The greatest seller of ETH remains those who created ETH.”
Also Read | Quant (QNT) Stabilizes at $70 Before Possible $260 Expansion Wave
Ethereum Foundation Boosts Staking Activity
The Ethereum Foundation started participating in staking operations for its assets after changing its treasury approach in June 2025. It was done to earn from staking and decentralized finance operations and contribute to funding research and development in the ecosystem.
From February to March, staking has gone up from slightly above 2,000 ETH to 22,000 ETH. Just recently, the foundation has added more than 45,000 ETH in different transactions, making the total stake close to 70,000 ETH, just shy of their target.
Issues still exist regarding the impact of such huge stakes on the network. Vitalik Buterin expressed concerns that huge stakes from the foundation could cause problems in times of critical decision-making in the network, especially when different blockchain alternatives emerge.
DeFi Giants Respond to Kelp
The DeFi ecosystem has recently been witnessing the consequences of a hack attack that occurred at the Kelp restaking protocol. The hackers stole more than 116,000 restaked ETH tokens, used them for collateral to acquire loans, and ended up creating roughly $195 million worth of toxic debts.
As a response, several leading DeFi entities have united to aid the impacted network. Under the initiative spearheaded by Aave, some of the parties involved include Lido DAO, Golem Foundation, EtherFi Foundation, and Mantle.
When considered together, their combined effort amounts to more than 43,500 ETH, worth more than $100 million, being put into action to stabilize rsETH.
Although both the Ethereum Foundation’s unstaking decision and the DeFi system recovery are two distinct incidents, they bring out the challenges associated with managing risks and resources on a larger scale.
Also Read | XRP Price Consolidates at $1.42 With Major Breakout to $3 in Focus
