As per transaction data, it has sought the withdrawal of 428,084 stETH in batches of 1,000

Bankrupt crypto lending company Celsius is concerned about getting its staked Ether stash back from liquid staking platform Lido which allowed withdrawals this week.

Celsius started the process of pulling out its Lido Staked ETH (stETH) from the protocol. As per transaction data, it has sought the withdrawal of 428,084 stETH in groups of 1,000.

The stash is estimated to be worth nearly $784.7mln at present prices. The step comes after a transaction of a similar amount of stETH on May 15 in preparation for withdrawal.

On the completion of the withdrawal process, Celsius will get the equivalent in Ethereum and the stETH tokens will be burnt by Lido.

As per Dune Analytics, the aggregate volume of stETH in the withdrawal queue is 442k across 141 requests. It is valued at nearly $808mln, nonetheless Celsius is accountable for most of it. The total volume already processed is 629 ETH, as per Dune.

On May 16, Lido said it had sufficient ETH in its buffers to absorb the demand.

Though, higher Ether withdrawal demand from Lido will have an effect on the network withdrawal queue — which is an active process. Lido is the biggest staking provider with a market share of nearly 30 per cent so Celsius might have to wait for a long time to get its ETH back if demand rises.

Research analyst at 21Shares, Tom Wan, proposed that if unstaking demand surpasses 10 per cent it could result in a higher number of validator exits. This would potentially result in longer queues for withdrawals.

The amount may be used as part of Celsius revamping efforts or to partially pay back some of its $4.7bln debts to creditors.

In late February, Celsius converted 22,962 wrapped Bitcoin (WBTC) into Bitcoin in a transaction worth around $540mln at the time.