Ethereum staking sees heavy withdrawal waves — But long-term growth remains firm

Ethereum staking is experiencing sharp weekly withdrawal spikes across major entities. However, the broader trend still indicates sustained long-term growth. 

New on-chain data from Dune Analytics reveals that, despite large batches of full withdrawals from platforms such as Lido, Binance, and Frax Finance, among others, the total amount of ETH staked continues to climb steadily.

Withdrawal waves intensify across major staking providers

The latest “ETH Full Withdrawals” chart shows that several entities initiated sizable withdrawal batches over recent weeks. 

Large exits from Lido, Binance, HTX, Rocket Pool, Frax, and Coinbase contributed to weekly totals reaching between 800,000 and 1.5 million ETH withdrawn at peak periods.

While these spikes may appear alarming at first glance, the breakdown suggests a rotation rather than a broad market exit. 

Historically, these waves occur when entities rebalance validator infrastructure, migrate client setups, or handle customer redemptions. 

Several corporate custodians and LST providers periodically cycle their validators for operational reasons, which shows up as full withdrawals rather than a drop in commitment to staking.

Total Ethereum staked still trending upward

Despite the withdrawal surges, the long-term “ETH Staked by Entity” chart shows that Ethereum’s total staked supply continues its multi-year climb. 

The network now sits above 33 million ETH staked, supported by a diverse set of participants, with Lido still leading 24.26% of the staked ETH.

The consistent upward slope signals that new validators are entering the system at a pace that offsets periodic withdrawals. 

More importantly, several newer restaking-aligned services such as ether.fi, Renzo, and P2P.org have grown sharply this year, suggesting a redistribution of staked ETH across alternative reward models rather than a decline in confidence.

A rotation, not a retreat

One clear pattern in the data is a shift away from older single-provider liquid staking services and toward multi-layer yield structures tied to restaking, LRTs, and modular staking ecosystems. 

These movements explain the periodic full withdrawals, particularly when examining entities that have recently expanded their offerings or integrated with restaking frameworks.

This helps position the current withdrawal activity as part of Ethereum’s evolving validator economy.

The broader impact on ETH’s economic landscape

Despite the visual size of the withdrawals, the underlying staked supply trend still leans structurally bullish:

• The number of active staking entities continues to increase.
• Total staked ETH remains near historical highs.
• New validators consistently replace exiting ones.
• Restaking-aligned protocols are absorbing fresh inflows.

This indicates that validator demand remains healthy even during periods of market uncertainty or price drawdowns. 

For Ethereum’s security model, this sustained staking participation is a positive sign. For price action, the charts suggest that the staking base remains stable and long-term oriented, even as withdrawal waves create short-term volatility.

Final Thoughts

• Withdrawal spikes reflect ecosystem rotation, not weakening confidence in Ethereum staking.
• The total staked ETH continues to rise, reinforcing the network’s long-term security and validator demand.