Recently, Ethereum has experienced a rare 'unstaking wave' — over 900,000 ETH are exiting the queue, with the longest waiting time reaching 16 days. Meanwhile, the ETH price fell from a peak of $4,789 to around $4,000. 🤔 Is this a wave of selling or a necessary test of network maturity?

The Logic Behind the Unstaking Wave 📉💡

Ethereum's PoS mechanism allows stakers to earn 2%–4% annualized yield by locking ETH, but there are rate limits on withdrawals. When a concentrated unlocking occurs, it leads to the current 'long queue'.

The real trigger comes from the dramatic fluctuations in the DeFi market. In mid-July, the borrowing rate for ETH on Aave soared to 18%, far exceeding the staking yield (2.9%). This was triggered by a wallet related to HTX withdrawing 167,000 ETH, leading to a sharp reduction in platform supply and skyrocketing rates. As a result, traders and institutions reliant on ETH for leveraged trading rushed to 'de-leverage', forced to unlock ETH to repay loans, triggering a chain reaction.

Unstaking ≠ Market Crash 🚫💥

Passive De-leverage: A reluctant choice amid soaring rates

Active Profit-Taking: Long-term stakers cashing out at high positions

Arbitrageurs Enter: Profit from the price difference between stETH and ETH

This means that the unstaking wave is more about rational rebalancing of funds rather than panic selling.

Ethereum's Resilience Test 🛡️✨

Despite short-term price pressure, Ethereum's withdrawal mechanism is operating smoothly, even in the face of the largest unlocking wave in history, it has not spiraled out of control. Meanwhile, the demand for new staking has nearly offset the withdrawal pressure, indicating continued market confidence in ETH's long-term value.

🔍 Conclusion

This is not a crisis, but a stress test.

The unlocking of 900,000 ETH not only reveals the risks of leveraged funds but also validates the stability and maturity of the Ethereum network. This may be a necessary step for Ethereum to achieve the status of a 'financial operating system'. 🚀

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