The Ethereum validator exit queue has reached its all-time high, with over 625,000 ETH, roughly valued at $2.3 billion, awaiting withdrawal. This trend has been driven by a rally in Ether prices, which peaked at $3,844.
Ethereum Validator Exit Queue
According to data from validatorqueue.com, the wait time for exiting Ethereum's validator network has extended to around eight to ten days, the longest since late 2023. From July 16 to July 22, the exit queue wait time jumped from under one day to over eight, with more than half a million ETH added to the exit queue, amounting to approximately $1.9 billion at current market prices.
Institutional Demand for Staking
A guidance published by the US Securities and Exchange Commission in May indicated that Ethereum is not a security because 'staking does not constitute a securities offering.' Analysts believe this has made ETH more attractive to traditional financial institutions. For instance, BlackRock has started to include ETH staking language in its applications.
Impact of Major Users' Actions
Network observers noted that Tron DAO founder Justin Sun withdrew 60,000 ETH from Lido, the largest liquid staking platform. This action triggered a 'domino effect,' forcing others to liquidate looping strategies, which worsened the situation in the market.
The increasing number of validators leaving the Ethereum network and the significant amounts awaiting withdrawal highlight active market participants' responses to price fluctuations and growing institutional interest in staking. The dynamics of the exit queue underscore important shifts in investor strategies.
