PANews August 17 news, according to data from validatorqueue.com, the Ethereum blockchain validator exit queue has reached 897,599 ETH, setting a new historical high. In this regard, Bitwise Senior Investment Strategist Juan Leon stated that the queue of ETH waiting to be unstaked is getting longer, which may be the reason for the recent pullback of this asset. The second-largest crypto asset, ETH, has shrunk by hundreds of dollars in recent days after approaching a historical high.
Juan Leon explained that the queue of unstaked ETH could have a negative impact on the price of ETH. "Tokens like stETH can trade at a discount. This discount reduces their value as collateral, leading to risk reduction, hedging, or even liquidation, ultimately resulting in spot ETH sell-offs." Juan Leon added that with the growth of the redemption queue, some trades may be liquidated, especially in cases where the cost of borrowing ETH has surged. When this happens, "leveraged 'stETH loop' trades conducted through liquidity pools on DeFi protocols will no longer be profitable." Leon stated: "Traders create synchronized selling pressure by liquidating and selling ETH to repay loans."
