Swell Pauses swETH and rswETH Amid Redemption Rate Discrepancy
Swell Network has halted deposits and withdrawals for its liquid staking tokens after a discrepancy emerged between the reported and market values.
Swell Network has halted deposits and withdrawals for its liquid staking tokens after a discrepancy emerged between the reported and market values. Ethereum (ETH) is trading at $2,377.76. This is an original TLT brief synthesising 2 outlets (Live Bitcoin News, Unchained), plus live market data, as of Sat, 24 Oct 2026 04:00:04 UTC.
The incident highlights potential vulnerabilities in liquid staking protocols, where token redemption mechanisms are critical for maintaining user trust and asset security.
- Swell paused swETH and rswETH deposits/withdrawals on October 23.
- Token redemption is currently frozen, with market prices diverging from reported values.
- Swell is working with security partners to address the issue.
Multiple outlets report that Swell Network has paused deposits and withdrawals for its liquid staking tokens swETH and rswETH following a discrepancy in the redemption rate. Live Bitcoin News and Unchained both confirm that the pause occurred on October 23 and that Swell is collaborating with security partners to resolve the issue. However, Unchained adds that the tokens are currently trading at a discount on decentralized exchanges compared to their reported contract values, suggesting a potential loss of confidence in the redemption mechanism.
Swell Network, a liquid staking platform for 
Ethereum, has temporarily halted deposits and withdrawals for its liquid staking tokens swETH and rswETH. The pause was initiated after the platform detected a discrepancy in the redemption rate, where the reported rate of swETH began to climb without the corresponding Ethereum backing it.
The incident has raised concerns about the reliability of liquid staking mechanisms, which are designed to provide users with a tokenized representation of their staked assets. According to Unchained, holders are currently unable to redeem their tokens through Swell, and the tokens are trading at a significant discount on decentralized exchanges compared to the inflated rate reported by their contracts.
Swell Network has acknowledged the issue and is working with security partners and Seal911 to secure its infrastructure and restore the net asset value of the tokens. The platform has not provided a timeline for when it expects to resolve the situation.
The incident comes at a time when liquid staking is gaining popularity as a way for users to earn staking rewards while maintaining liquidity. However, this episode underscores the potential risks associated with these protocols, particularly in terms of maintaining the 1:1 backing of tokenized assets.
In the broader market context, the total crypto market cap stands at $2.78 trillion, with 
Bitcoin down 0.84% over the past 24 hours and Ethereum, the underlying asset for swETH, trading at $2378.41, a 0.86% decrease over the same period. The Fear & Greed Index remains at 51, indicating a neutral market sentiment.
Since this brief published about 15 hours ago, Ethereum (ETH) has moved from $2,378.41 to $2,377.76 — -0.03%.
The chart plots ETH's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from TLT's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
At today's peer-to-peer rate, 1 ETH ≈ ₦3.28M (about $2,377.76), down 1.2% over 24 hours. The naira itself trades about 3.9% above the official rate on the P2P market, so a Nigerian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the asset in this story — live, source-stamped, updated every 15 minutes.
Figures and sectors in this story, checked live against on-chain aggregators · October 24, 2026.
TLT reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
Swell Pauses swETH and rswETH Amid Redemption Rate Discrepan — questions & answers
Why did Swell Network pause swETH and rswETH deposits/withdrawals?
The pause was due to a discrepancy in the redemption rate where the reported rate of swETH increased without the corresponding Ethereum backing it.
What is the current status of swETH and rswETH tokens?
Holders cannot redeem their tokens through Swell, and the tokens are trading at a discount on decentralized exchanges.
How is Swell addressing the issue?
Swell is working with security partners and Seal911 to secure its infrastructure and restore the net asset value of the tokens.
How much is 1 Ethereum worth in naira today?
About ₦3.28M at the live peer-to-peer (P2P) USDT rate, which is what Nigerians typically trade at — equivalent to roughly $2,377.76. The naira price moves with both ETH's US-dollar price and the USDT/NGN rate; use our Ethereum in naira page for any amount.
Which outlets reported this story?
This is an original TLT brief that synthesises reporting from Live Bitcoin News, Unchained, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original TLT brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.