According to BlockBeats, Ethereum validators are experiencing the longest exit queue in over a year, indicating a rush to withdraw funds following a significant rise in ETH prices. Data from validatorqueue shows that as of Tuesday afternoon in the United States, approximately 519,000 ETH, valued at $1.92 billion at current prices, are queued to exit the network. This marks the largest exit queue since January 2024, extending withdrawal delays to over nine days.
Andy Cronk, co-founder of staking service provider Figment, noted that people tend to unstake and sell during price increases to secure profits. He observed that both retail and institutional investors follow this pattern across multiple cycles. Cronk added that large institutions might trigger substantial unstaking when changing custodians or wallet technologies.
Despite the wave of unstaking, the market may not face significant selling pressure due to strong demand for staking from new validators. Currently, 357,000 ETH, worth $1.3 billion, are waiting to enter the network, with the entry queue extending beyond six days, the longest since April 2024. Some of this new demand may originate from the ETH treasury fund. The U.S. Securities and Exchange Commission's declaration that staking is not illegal has further boosted institutional interest. Since late May, the number of active validators has increased by 54,000, reaching a historic high of nearly 1.1 million.
