The value of ether pending withdrawal on Ethereum, a major smart-contract protocol, has dipped below USD 1 billion, which is a notable decrease compared to over USD 3 billion recorded in mid-April.
The apparent cause behind this decline in Ethereum withdrawals is the increasing burn rate of ether due to the increasing popularity of memecoins.
Token Unlocks, a data tracking website, has reported that the total amount of ether confirmed and queued to withdraw is approximately 488,470 coins, worth less than USD 900 million at current prices. This indicates that the net staking balance on Ethereum is slowly approaching parity, as the total amount of ether withdrawn compared to deposited is becoming more balanced.
The Shapella upgrade, which took place just before 6:30 p.m. ET on April 12, enabled staked ether withdrawals and was the first significant upgrade on Ethereum since The Merge moved the protocol to proof-of-stake last year. As per Token Unlocks, the amount of ether deposited is approximately 17.74 million, with a value of over USD 32.5 billion. Despite the decline in Ethereum withdrawals, it is assumed that the surge in memecoins’ popularity is pushing ETH burn rates higher, resulting in fluctuations in Ethereum’s net staking balance in the near future.
