According to Cointelegraph, the amount of Ether (ETH) queued for unstaking has reached an unprecedented level, with a total value of $12 billion and a wait time of 44 days. This surge in the exit queue suggests that investors may be looking to capitalize on yearly profits, as Ethereum's exit queue has surpassed 2.6 million ETH. This marks the highest amount of Ether set for withdrawal by the network’s validators, who play a crucial role in securing the Ethereum blockchain by adding new blocks and verifying transactions.
Data from ValidatorQueue indicates that the current number of active validators exceeds 1.05 million, with 29.4% of the total ETH supply staked, amounting to approximately 35.6 million ETH. Despite the record-high exit queue, not all validators are necessarily planning to sell their holdings. However, a significant portion of the over $12 billion may be offloaded to lock in profits, especially as the Ether price has risen 97% over the past year. Crypto analyst MartyPary described the situation as the largest validator exodus in crypto history, while crypto YouTuber Lark Davis warned of potential heavy sell pressure.
Meanwhile, the Ethereum staking entry queue has reached its lowest level in four weeks, raising concerns that the surge in the exit queue could lead to a major sell-off. As of the time of writing, more than 512,755 ETH, worth around $2.3 billion, are waiting to be staked, down from 959,717 ETH ($4.3 billion) on September 5, indicating a slowdown in demand for staking Ether.
Despite these developments, strong institutional demand is helping to mitigate fears of a potential sell-off. Data from strategicethreserve.xyz reveals that collective holdings of strategic reserves and spot ETH exchange-traded funds (ETFs) have increased by 116% since July 1, rising to 11,762,594 ETH from 5,445,458 ETH. This sharp increase highlights a swift influx of Ether supply into the hands of major institutional and corporate players, many of whom are likely to stake the asset for additional yields, potentially boosting the entry queue in the coming weeks.
Another positive narrative is linked to the potential launch of ETH staking ETFs, which could see investors freeing up liquidity to re-enter these products later, effectively reshuffling their exposure without exiting the ETH market altogether. While the SEC’s final deadline for approval is set for April 2026, analyst Axel Bitblaze suggests that approval could come much sooner, possibly as early as October 2025. Capital continued to flow into crypto exchange-traded products last week, with Ethereum investment products attracting $646 million in inflows, signaling a renewed appetite for ETH among institutional investors. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
