Why did Ethereum Foundation unstake $40M in ETH?

The Ethereum Foundation has unstaked 17,035.326 ETH, worth about $40 million, shortly after moving close to its 70,000 ETH staking target. 

Arkham data showed the transaction on Saturday. The foundation deposited wrapped staked ETH into Lido’s unstETH contract. The ETH will return after the withdrawal queue completes, based on Ethereum’s normal unstaking process.

The Ethereum Foundation began staking ETH after changing its policy in June 2025. The group said staking and DeFi activity would help fund protocol research, development, and ecosystem grants.

Since February, the foundation has increased its staked ETH balance. It started with 2,016 ETH, added 22,517 ETH in March, and later staked more than 45,000 ETH this month.

Those transactions lifted its total staked ETH to about 69,500 ETH. The figure placed the foundation close to its stated 70,000 ETH staking goal before the latest withdrawal.

Unstaking raises market questions

The Ethereum Foundation has not explained why it unstaked over 17,000 ETH. The lack of a public reason led some market users to question whether the ETH could move to exchanges or be sold.

One user wrote, “The biggest seller of ETH continues to be the people who created ETH.” The comment reflected market concern, though no official statement has linked the unstaking move to a sale.

In Ethereum, staking locks ETH to help secure the network through validators. Unstaking starts a withdrawal request, places funds in a queue, and releases ETH after the waiting period ends.

DeFi recovery efforts continue after rsETH exploit

The move also comes as DeFi protocols work to support rsETH after a large Kelp restaking exploit. The incident involved more than 116,000 restaked ETH tokens and left bad debt across lending markets.

Aave has led a DeFi United recovery effort with support from Lido DAO, Golem Foundation, EtherFi Foundation, and Mantle. Backers have pledged more than 43,500 ETH, worth about $101 million, to help stabilize rsETH.

Ethereum co-founder Vitalik Buterin has also warned about risks tied to large foundation staking. He said heavy staking by the foundation could create governance concerns during disputed hard forks.