Crypto News – The news that cryptocurrency lender Celsius, which is reorganizing under bankruptcy procedures, will unstake its holdings of the second-largest cryptocurrency, Ether (ETH), may see a price increase in the upcoming weeks. This move could eliminate a potential contributing cause to the token’s poor performance in recent months.
Breaking News: Celsius ETH Assets to be Unstaked
The company had previously stated that it would incorporate staking into its operations. The company is currently transforming to become a Bitcoin miner. To pay for the expenses related to the reorganization plan, the company has been offering staking awards for sale on the open market.
Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process. The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors.
Celsius
Stake Rewards May Have Negatively Impacted Ether’s Price
Arkham’s data reveals that crypto wallets associated with Celsius have staked more than $151 million worth of Ether. It implies that the position generates approximately 4%–5% in annualized dividends. Together with other variables like interest in other blockchains, the staking rewards may have contributed to the unfavorable mood surrounding the token, even though they may not have directly caused a significant volume of Ether sales.
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