According to Cointelegraph, the Ethereum validator exit queue is anticipated to increase in the coming days, but market participants are advised not to be overly concerned. Ethereum educator Anthony Sassano reassured that the Ether (ETH) being unstaked is likely to be restaked using new validator keys, rather than being sold. This statement follows Kiln Finance's announcement after a security breach involving SwissBorg, a Switzerland-based crypto wealth management platform.
The unstaking of a large volume of Ether is often viewed as a bearish signal, as it may indicate potential selling pressure. Currently, the ETH exit queue stands at 1,628,074, with approximately 35.5 million ETH staked, representing about 29.36% of the total supply. Kiln Finance has initiated an "orderly exit" of Ethereum validators as a precautionary measure to protect client assets across all networks, following an incident involving the exploitation of a vulnerability in the API of its staking partner, SwissBorg. This breach resulted in the loss of approximately 193,000 Solana (SOL) tokens from SwissBorg's Earn program.
Kiln Finance has stated that the exit process for Ethereum validators is expected to take between 10 and 42 days, depending on the validator. This measure is intended to ensure the integrity of the staked assets. At the time of publication, Ether is trading at $4,306, according to CoinMarketCap. The Ethereum network has experienced fluctuations in entry and exit queues in recent months. On August 28, it was reported that Ethereum witnessed the largest validator exodus in crypto history, with over 1 million Ether tokens awaiting withdrawal from staking through its proof-of-stake (PoS) network. Additionally, on September 3, the amount of Ether in the queue to be staked reached its highest level since 2023, as institutional traders and crypto treasury firms sought to capitalize on staking rewards.
