The current Ethereum POS network exit queue has increased to 694,000 ETH, and new staking demand is beginning to decline

Approximately $2.64 billion worth of ETH is queued to exit the Ethereum POS network, and new staking demand is beginning to decline.

What sentiment does the market indicate? What impact does it have on Ethereum going forward?

"Exit queue of 694,000 ETH": indicates that a large number of stakers are queuing to unstake and prepare to withdraw ETH.

"New staking demand declines": the number of applications for staking ETH in the network decreases, indicating a weakened market willingness to continue locking up ETH.

Possible underlying reasons

I. Short-term arbitrage completed:

Some early stakers have completed their profit cycle and choose to exit the lock-up to realize profits.

II. Price reaches a high stage:

ETH has rebounded nearly 50% since the low in June, with stakers choosing to cash out at 'high positions' to lock in profits.

III. Weakened confidence in macro or technical prospects:

Market uncertainties regarding ETH ETF trends post-approval, changes in Gas after the Fusaka upgrade, and the pressure of Layer 2 on the main chain's value may affect long-term lock-up willingness.

IV. DeFi/NFT arbitrage opportunities attract funds back to the main chain:

Minting NFT activities or new project airdrop demands attract some staked ETH back to participate in activities on-chain.

Potential impact on Ethereum's price and ecosystem

1. Price perspective:

Short-term bearish:

If a large amount of ETH is sold after exiting, it may intensify market selling pressure.

In addition, the slowdown in new staking reduces ETH's 'natural lock-up' buying pressure, creating a certain bearish atmosphere for the spot market.

Mid-term neutral to slightly bearish:

If the exited ETH is mainly used for on-chain participation (such as NFT, DeFi), the price impact is controllable; if a large amount is transferred to exchanges, be wary of concentrated selling.

2. Ecological perspective:

The growth rate of the number of validators will slow down, potentially temporarily reducing the network's decentralization growth rate;

Staking APR (annualized return) may rise due to fewer stakers, with rewards distributed among fewer people → or re-attract some funds back;

If the exit speed does not keep up with the number of applications, it may cause 'congestion' among validators → marginal decrease in network efficiency.