692,000 validators, representing 63% of the Ethereum network, are in line to exit Ethereum staking
More than 63% of active validators are in line to withdraw Ethereum from staking, indicating a strong profit-taking.
Ethereum's staking system has been suffering with the recent price increase of Ethereum and is facing the largest outflow in history.
According to data from Ethereum Validator Queue, more than 692,000 validators are in line 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.
Data shows that since early July, when Ethereum began a recovery movement, the exit queue has been 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 into dollars.
The phenomenon recalls January 2024, when more than 500,000 validators waited in line to withdraw their coins. During that period, Ethereum surged 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.
