Ethereum is facing a major validator exit wave, with over 632,000 ETH—worth about $2.27 billion—queued to be unstaked. This comes on the heels of a 56% price rally in ETH over the past month, which has sparked a rush for profit-taking among validators.
Crypto analyst Udi Wertheimer flagged the surge, comparing it to the January 2024 exodus when ETH/BTC jumped 25%. Ethereum’s proof-of-stake (PoS) model restricts the daily ETH withdrawal limit to 1,800 ETH to maintain network stability. With current exit numbers, validators now face a 9+ day delay to unstake their tokens.
This marks a significant increase from July 21’s $1.3 billion in exit queue value, reflecting rising pressure from ETH holders looking to capitalize on recent gains. ETH is currently trading at $3,605, according to CoinMarketCap.
Some analysts believe the surge may lead to selling pressure, especially since 60% of unstaked ETH has moved to exchanges, as per Glassnode. Others suggest it could boost Ethereum’s onchain activity.
Interestingly, the timing aligns with record-breaking Ethereum ETF volumes, hitting $3.1 billion, largely driven by BlackRock’s $2.16 billion share. This dynamic shows both investor confidence and short-term volatility in the ETH market.
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