Coinbase Introduces Instant Unstaking for 1% Fee, Bypassing Withdrawal Queues
Coinbase has launched an instant unstaking option that lets users immediately unstake crypto assets for a 1% fee, removing the need to wait in protocol withdrawal queues. The feature addresses long unstaking wait times that vary by asset — Coinbase CEO Brian Armstrong cited Ethereum (ETH) as typically taking about 38 days in the standard unstaking queue. Coinbase also continues to offer alternatives such as wrapping staked ETH into its liquid token cbETH. The new instant unstake provides traders and stakers faster liquidity, while Coinbase captures a fee for the service. Key items: instant unstaking feature, 1% fee, bypasses protocol queues, example: ETH ~38-day wait, alternative: cbETH.
Bullish
Instant unstaking reduces liquidity friction for stakers by providing immediate access to funds in exchange for a 1% fee. For traders, faster access to capital can increase on-chain activity, trading volumes, and capital rotation — factors that are often supportive of market liquidity and short-term price discovery. Historically, products that improve liquidity (e.g., liquid staking derivatives like Lido’s stETH or exchange-wrapped tokens) have encouraged trading and institutional participation. Coinbase’s large user base and trusted brand mean adoption could be significant, amplifying these effects. Possible short-term impacts: increased selling pressure from users who immediately unstake and rebalance positions, but offset by higher trading volume and quicker re-entry. Possible long-term impacts: improved market efficiency and higher active liquidity as stakers treat assets as more liquid, supporting price resilience and institutional use. Risks: if many users use instant unstaking to exit simultaneously, it could create temporary downward pressure; regulatory or operational issues could also affect confidence. Overall, net effect is likely positive for market liquidity and participation, hence bullish.