Ethereum Foundation Unstakes $49.6M ETH From Lido Finance

Ethereum Staking Strategy Shift Toward Direct Validators

The Ethereum Foundation has begun withdrawing around 21,270 ETH worth approximately $49.6 million from Lido Finance, signaling a notable shift in its staking approach. The move was first identified by Arkham Intelligence on April 26, and as of May 11, the assets remain in Lido’s withdrawal queue. The process converts staked stETH back into ETH, marking a structured exit rather than an immediate sell-off.

This action follows the Foundation’s earlier decision in April to stake about 70,000 ETH worth nearly $166 million directly through its own validators, indicating a stronger focus on in-house staking infrastructure. The shift suggests growing interest in reducing reliance on third-party staking platforms.

Lido Concentration Risk Under Scrutiny

Lido currently controls around 22.8% of all staked ETH, raising concerns about centralization risks within Ethereum’s staking ecosystem. The Foundation’s move highlights ongoing debate over decentralization versus convenience in staking solutions.

Recent activity also includes OTC ETH sales totaling $47 million to Bitmine, adding to signals that the Foundation is actively reshaping its treasury and staking strategy. Traders are now watching how the unstaked ETH will be deployed next.