The Ethereum Foundation unstaked 17,035.326 ETH, worth roughly $40 million, over the weekend. Arkham data shows the foundation deposited wrapped staked ETH into Lido's unstETH contract. The ETH will return once the withdrawal queue completes, following standard Ethereum unstaking mechanics.
A sharp reversal after a steady accumulation run
The foundation changed its staking policy in June 2025, announcing that staking and DeFi yields would help fund research, development, and ecosystem grants. Since February, it steadily built up its staked position: starting with 2,016 ETH, adding 22,517 ETH in March, and then pouring over 45,000 ETH this month. Before the withdrawal, total staked ETH stood at roughly 69,500, very close to the disclosed target of 70,000 ETH.
The sudden unstaking of more than 17,000 ETH – about one-fourth of its staked total – caught the market off guard. The foundation has offered no public explanation for the move.
'The biggest seller of ETH is the people who created it'
The lack of an official reason sparked immediate speculation. One user on social media wrote, 'The biggest seller of ETH continues to be the people who created ETH.' The sentiment reflects market unease, though no on-chain evidence or official statement links the unstaking to an imminent sale. Unstaking only initiates a withdrawal request; funds remain locked until the queue clears.
DeFi recovery efforts continue alongside governance debate
The move comes as DeFi protocols manage the aftermath of the Kelp restaking exploit, which drained over 116,000 restaked ETH and left bad debt across lending markets. Aave leads a 'DeFi United' rescue effort backed by Lido DAO, Golem Foundation, EtherFi Foundation, and Mantle. Backers have pledged more than 43,500 ETH (roughly $101 million) to stabilize rsETH.
Ethereum co-founder Vitalik Buterin previously warned that heavy foundation staking could create governance risks during contested hard forks. Whether this unstaking reflects those concerns remains unknown. The foundation has not issued any statement on its website or social channels, leaving the market to wait for further clarity.