Celsius Trades For This Altcoin: Network Congested!

A move that resonated throughout the cryptocurrency community drew attention. Celsius quickly withdrawn 428,000 ETH (equivalent to 813 million dollars) from the Lido Finance staking protocol. As of now Celsius has 32,000 ETH currently on Lido. Here are the details…

Celsius stakes millions of dollars in ETH

On June 1, Celsius began allocating funds to various staking contracts, with 198,000 ETH to Celsius’ own stake pool and 197,000 ETH to Figment’s staking address. According to data from Arkham Intelligence, Celsius has successfully staked 745 million USD worth of ETH to the Ethereum network. This significant amount of ETH staking caused the already congested Ethereum network to experience more latency. The network has been grappling with verification backlogs since the Shanghai upgrade. This latest stream of ETH staked by Celsius is expected to extend the transaction time by another 6 days and 15 hours. In simpler terms, if investors decide to participate in staking right now and become validators for Ethereum, they will have to wait 45 days for confirmation.

Celsius’ decision to restore ETH staking is seen as an effort to generate additional profits to support its ongoing financial restructuring. Faced with financial pressures last year, the lender faced difficulties in converting their stETH back to ETH to meet users’ withdrawal requests. Funds from the stake are expected to help Celsius meet its obligations to creditors.

Some of Celsius’ assets are up for auction

Last week, Celsius’ assets were auctioned by a US court, with Fahrenheit emerging as the winning bidder. Fahrenheit is an investment group supported by Arrington Capital. The credit organization will now hold Celsius’ portfolios, including its token staking and crypto mining units. Celsius’ move to allocate a significant portion of its assets to staking ETH can be interpreted in many ways. For some, the move demonstrates the company’s determination to overcome its financial difficulties and deliver returns to its borrowers.

However, the resulting tension on the Ethereum network is critical to easing congestion. It highlights the urgent need for solutions to enable smooth future transactions on ETH. Ultimately, Celsius’ move to stake such a large amount of ETH is a testament to the increasing trend of staking in the crypto market. Staking is becoming an increasingly popular option as more investors seek ways to generate passive income from their holdings. As more companies like Celsius enter the market, even more growth in the staking industry can be expected in the months and years ahead.