The Ethereum staking system has been suffering from the recent price increase of Ethereum and is facing the largest exodus in history.
According to data from the Ethereum Validator Queue, more than 692,000 validators are queued to leave the network. This movement represents the largest exit since The Merge, when Ethereum migrated from proof-of-work to the current proof-of-stake.
The data indicates that, since early July, when Ethereum started a recovery movement, the exit queue is growing daily, signaling that investors want to unlock their funds.
Thus, more than 63% of validators want to 'exit' the network. This trend may be linked to profit-taking. With the price of Ether (ETH) rising in recent months, many validators are taking the opportunity to convert their profits to dollars.
The phenomenon is reminiscent of January 2024, when more than 500,000 validators waited in the queue to withdraw their coins. During that period, Ethereum jumped from $2,200 to $3,500, incentivizing massive exits.
However, the sale of Ethereum by validators may exert strong selling pressure on the value of Ethereum, which could hinder absorption by ETFs and retail investors.
@larangedev
