The decline occurred due to the rapid growth in demand for ETH staking, as the Shanghai update caused a wave of new deposits. The inflow of funds exceeded their withdrawal by about 3.5 million ETH, which amounted to $7.3 billion. In turn, the outflow of funds amounted to $517 million. Tom Wang, an analyst at 21Shares, noted that the reason for this situation was the unwillingness of investors to be exposed to regulatory risk when using the Coinbase staking service.
This year, the U.S. Securities and Exchange Commission sued the Kraken exchange and closed the staking service for American customers. On June 6, the SEC also filed a lawsuit against Coinbase for violating federal securities laws. At the same time, representatives of the exchange stated their unwillingness to close their staking service.
According to the analytical company 21Shares, after the trial, Coinbase withdrew more than 149,300 ETH from the Proof-of-Stake network with an initial investment of 52,992 ETH. A net outflow of $183 million indicates the refusal of users to use the American exchange.
At the same time, Coinbase holds its position and is the second largest provider of staking services.