Recent statistics reveal that a significant amount of ethereum staked on Coinbase has been redeemed, with 27,280 tokens being redeemed on June 6. This development comes in the wake of the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against Coinbase for not registering its staking-as-a-service program.
Redemptions Soar on Coinbase Amidst SEC Lawsuit Fallout
June 6, 2023, marked a pivotal moment for Coinbase as the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the San Francisco-based exchange. One of the SEC’s complaints alleges that Coinbase neglected to register its staking-as-a-service platform. In the aftermath of this legal action, Dune Analytics has recorded tens of thousands of redemptions for Coinbase’s CBETH, the exchange’s staked ether product.
On that day, a staggering 27,280 CBETH was redeemed, followed by nearly 9,000 CBETH the next day, according to recent statistics. As of today, June 8, over 3,400 CBETH has already been redeemed. It’s worth noting that Coinbase, the second-largest liquid staking service provider in terms of ETH held, has locked up 1,106,424 ether.
Coinbase’s stash of ether is currently valued at $2.12 billion, based on current exchange rates. Out of the 20 liquid staking providers, Coinbase’s CBETH accounts for a significant 11.46% of the 9,650,762 ETH locked into these decentralized finance (defi) protocols. Although Coinbase’s market share is substantial, it pales in comparison to the size of Lido Finance’s ether stash.
At the moment, Lido’s protocol reigns supreme, holding an impressive 7,155,072 ETH, which translates to a whopping 74.14% of the market share. Meanwhile, Coinbase’s CBETH has experienced a 3.56% drop over the last 30 days and a 2.28% decrease over the past seven days.
If CBETH continues to see a surge in redemptions, there’s a chance that Rocket Pool could overtake Coinbase as the second-largest market share holder. As it stands, Rocket Pool currently holds 761,641 ether, which is 344,783 ether less than Coinbase’s current count.
What are your thoughts on Coinbase’s legal battle with the SEC and the surge of redemptions in staked ethereum? Share your thoughts and opinions about this subject in the comments section below.