Analysis

This analysis will delve into the key observations and insights that we have gathered from our on-chain analytics dashboard concerning the activity of the stETH token, specifically focusing on the withdrawal and deposit actions since the launch of stETH withdrawals. From the data, we observe a notable trend: more users are withdrawing stETH each day than depositing. This indicates a potential shift in the market sentiment towards the token. Despite the increasing number of users withdrawing, the deposit volume for stETH has remained significant. On May 17th, there was a massive spike in withdrawals with over 430,000 stETH being withdrawn from the liquid staking contract. This volume is far greater than the usual daily figures which range between 20K and 112K. However, it is worth noting that outside of this large spike, withdrawal activity has been rather modest with less than 12K stETH withdrawn on most other days. Interestingly, even with this considerable withdrawal spike, the stake with the LIDO stETH liquid staking derivative remains consistent with the figures from the previous week. This observation suggests that the withdrawal spike only equates to about a week's worth of deposits, indicating that the system's overall liquidity has not been significantly affected. When we examine the distribution of withdrawals, it appears that the majority of users are withdrawing between 1 and 10 ETH. There was only one wallet that withdrew more than 10,000 stETH. This implies that the large-scale withdrawals are not a widespread behavior among users. The wallet that made the largest withdrawal removed 428,000 stETH, which is over 99% of the total volume withdrawn. Speculation suggests that this wallet belongs to Celsius and the ETH is being extracted for staking during the bankruptcy proceedings. This is an anomaly and is not representative of the general behavior of stETH holders. Lastly, focusing on the median withdrawal figures, we find that most users have withdrawn around 2.2 ETH. This provides a more balanced understanding of typical user behavior, emphasizing that despite the outliers, most users are only withdrawing modest amounts. In conclusion, while there are more users withdrawing stETH than depositing, and there have been significant withdrawals, the overall staking in LIDO's stETH liquid staking derivative remains stable. The distribution of withdrawals shows that large-scale withdrawals are not common and are likely linked to specific users or circumstances.

Lido stETH Redemption Analysis